Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Ring of Confidence returns

09:10 AEST, Wednesday 8 January 2014

Ring of Confidence returns

By Ric Spooner (Chief Market Analyst, CMC Markets)

The ring of confidence returned to international equity markets last night after an ambivalent start to the New Year. This looks set to support a firm opening on our market this morning.

An improving trade balance looks to be joining housing, manufacturing and consumer spending as supportive elements for US economic growth. Equity markets were encouraged by the lower than expected US trade deficit for December. The fact that this improvement has a structural element in the form of the weakest oil imports for three years, as shale oil production increases, leads to optimism that this will be an ongoing positive for US growth.

Increasing confidence about Southern European economies also helped restore New Year confidence with Spain’s IBEX up 2.9% last night.

Last night’s confidence will need to translate into a move past the New Year high of 5384 if it’s to be more than a temporary blip and more upside work would be required over coming days to achieve this.

Despite the European and US inspired confidence supporting this morning’s opening, China may be crucial to how the market closes. Iron ore stocks fell significantly yesterday as spot prices faltered and the iron ore price will be closely watched today. China’s trade balance also has the capacity to impact markets, with steady growth prospects in emerging markets recently balancing improved optimism for developed economies.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news