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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news