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

 


Local sharemarket emerges from doldrums with solid start

11:07 AEST, Thursday 6 February 2014

By Niall King (Sales Trader, CMC Markets)

Having been mired in the red recently, the local sharemarket has finally emerged from the doldrums posting a solid gain in the early stages of this morning’s session. Shunning uninspiring leads from overseas markets, the shift in the domestic interest rate outlook which soured sentiment among domestic investors looks to have dissipated. The major banks and miners have stolen an early march, driving the benchmark index north in what may be a search for value after days of selling.

Symptoms of unease that the major equity markets in the US have been displaying since the turn of the year were evident once more by fluctuations overnight. For the most part, a prosperous environment of generally robust corporate earnings and steadily improving economic fundamentals continues to prevail. However, given the volatile start to the year that markets have endured amid Fed tapering and emerging market jitters, investor hesitation in the short-term is understandable. Mediocre employment data from the world’s largest economy overnight was sufficient to reign in bullish activity, casting a cloud over the labour market environment ahead of the main payroll reading at the end of the week.

Having started the week firmly on the back-foot, conditions could conspire to see the Aussie dollar potentially end it by mounting what would have seemed an unlikely charge at US 90 cents. With the local Central Bank showing their hand to be decidedly less dovish than had previously been envisaged, long side appetite for the local unit has grown forcing positions to be shuffled.

Today’s headline acts on the economic data front that comes in the form of Retail Sales and the monthly Trade Balance data. Positive vibes here could add momentum behind the Aussie dollar’s mini-resurgence and could also help entice some nervous investors back into the equity market. Broader sentiment direction however may have to wait a little longer with pivotal announcements from the ECB and US non-farm payrolls among others, due in the next 48 hours.’

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news