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

 


Stock market takes a breather while Aussie dollar gets going

09:30 AEST, Wednesday 5 February 2014

By Ric Spooner (Chief Market Analyst, CMC Markets)

The stock market looks set for a steady day as world markets last night took a breather from the previous day’s heavy selling.

The rally in risk markets last night extended to emerging market currencies and commodities as well as equities, and indicates that investors are assessing the wisdom of continuing to switch out of these assets into developed nation bonds, given the size of recent market moves and the outlook for continuing growth in world economies.

Even so, markets are likely to remain cautious at this stage. The size of yesterday’s moves indicates substantial selling momentum that is not yet being met by large scale bargain hunting. Last night’s rallies were typical of the kind of minor consolidation that follows heavy selling and conservative buyers are likely to want more comfort that they are not standing under the proverbial knife before committing to the market at current levels.

Unlike the equity markets, the strong rally in the Aussie Dollar yesterday is suggesting that it has not only formed a base but is developing significant upward momentum. With the RBA removing the punch bowl for Aussie dollar bears, there is a short covering scramble as investors focus on the potential for the ongoing carry trade into this AAA rated currency with rates staying near zero for some time in Japan, Europe and probably the US.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news