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

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news