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

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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