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


IG Markets Afternoon thoughts – August 12

Across Asia, regional markets are mostly higher following the positive lead from Wall Street where participants were buoyed by news of short selling restrictions in Europe and stronger-than-expected jobless claims numbers. The Hang Seng is the biggest gainer, up 1% while the Kospi and Shanghai Composite are up 0.5% and 0.1% respectively. The Nikkei 225 is seeing some selling pressure, down 0.4%.

In Australia, the ASX 200 is currently 1.4% firmer at 4198, having earlier touched an intraday high of 4216. With European and US markets enjoying significant rebounds overnight the local market always seemed poised to end the week on a positive note – and it has certainly panned out that way. Gains for the day are broad based with the heavyweight materials, energy and industrial sectors all up by more than 1% The financial sector is seeing more modest buying interest to be currently higher by 0.6%.

The topsy turvy ride for financial markets continued overnight as a strong rally in Europe started half way through their session and carried over into US trade. The catalyst seemed to be rumours, which were later confirmed of short selling bans being put in force in France, Spain, Italy and Belgium. This will certainly help to control some of the recent volatility seen, especially the panic selling that’s been driven by rumours like the Soc Gen sell off seen a few nights ago.

It certainly looks like clearer minds are starting to prevail and that market moves are starting to become more rational. Hopefully this trend continues but we must remember how quickly this fear and panic driven selling can re-emerge. There were plenty of false starts during the GFC!

Whilst we may have seen the worst of the selling, the fundamental reasons behind the selloff are still present; until we have greater uncertainty as to how these issues are going to end, nervousness is likely to remain. Tonight’s session will be key in helping to further stabilise sentiment, especially given the retail sales data and consumer sentiment index due for release in the US. Better than expected results here could help allay concerns over the state of US economic growth.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Financial Markets Authority: Online Investing Platforms Transform Attitudes To Investing

Eight out of 10 New Zealand investors have a more favourable view of investing and financial markets after using online investing platforms, according to research released today by the Financial Markets Authority - Te Mana Tātai Hokohoko... More>>

Barfoot and Thompson: Auckland Housing Prices Shrug Off Winter Concerns

Auckland house prices shrugged off the normal winter downturn, concerns about increasing prices and warnings of possible future interest rate rises in July.
“Mounting concerns about the prices being paid and possible future interest rate increases did nothing to dampen July trading... More>>

Stats NZ: Sharp Falls In Unemployment And Underutilisation

The seasonally adjusted unemployment and underutilisation rates fell to 4.0 and 10.5 percent, respectively, in the June 2021 quarter, Stats NZ said today. The unemployment rate continued to fall from its recent peak of 5.3 percent in the September 2020 quarter... More>>

ASB: Labour Shortage Sting Set To Cause Issues For Years According To Latest Quarterly Economic Forecast

There are positives and negatives in the latest ASB Quarterly Economic Forecast as New Zealand continues to bounce back strongly from COVID-19. The closed border is putting additional strain on the country’s labour market... More>>

Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>