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

 

Markets in wait and see mode

Markets in wait and see mode


By Ric Spooner (Chief Market Analyst, CMC Markets)

The stock market is likely to strike a subdued tone in early trading as traders wait for data on China’s trade performance and US jobs growth.

The onset of the US quarterly reporting season also has investors in wait and see mode. The big increase in stock market price earnings valuations in developed economies over 2013 means that markets are now potentially very sensitive to misses on earnings expectations.

Alcoa has started things off on the wrong foot by missing expectations in its profit announcement released after the US market closed. This is likely to add to the subdued tone on the local market, particularly in the resource sector which will also be impacted by lower overnight commodity markets.

Investors are waiting on the release of China’s trade data after further moderation in the manufacturing PMI’s released at the beginning of the month. Recent softness in resource stocks has been at least partly attributable to growing concerns that the pace of economic growth in China has been softening.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>