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

 


Yellen’s remarks create urgency for stock market buyers


Yellen’s remarks and a strong CBA result create urgency for stock market buyers


By Ric Spooner (Chief Market Analyst, CMC Markets)

While Janet Yellen’s remarks last night were very much in line with expectations, the timing was a happy coincidence for stock market bulls.

By yesterday’s close, the S&P/ASX 200 index had risen 5% from its low only five days ago as bargain hunters returned to the market. As time progressed, this rally gathered momentum with buyers seeking to take advantage of the value window created by the recent market correction. When Ms. Yellen’s comments failed to scare the horses, buying momentum continued in international markets last night and will continue in our market this morning as value hunters seek to act before it’s too late.

CBA’s result is likely to assist this morning’s market mood. It has followed ANZ’s quarterly update with cash earnings beating average expectations. Despite CBA’s relatively cautious outlook statement, this result provides the bank with a solid platform to build results into what should be an improving environment for the banking sector.

In a busy period for markets, traders will be alert to the impact of China’s trade data. This looks like one of those data sets that could influence markets in either direction. A significantly better than expected result could increase the momentum of commodity and resource sector buying. However, given latent concerns about China and the Emerging Markets Sector, a negative miss could easily introduce a note of caution to current market optimism.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news