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

 

IG Markets - Afternoon Thoughts

/


IG Markets - Afternoon Thoughts

FTSE 5852 0
DAX 7063 +22
CAC 3489 +1
IBEX 7552 -9
DOW 13272 -3
NAS 2777 -3
S&P 1417 -1

Oil 96.32
Gold 1619

Across Asia, markets are mixed despite gains in offshore markets on Friday. Risk sentiment was largely positive on Friday with low levels of volatility and tight ranges being the dominant theme. Data in the US remained positive with the University of Michigan consumer sentiment index rising above consensus to 73.6 in early August and the index of leading economic indicators advancing 0.4% (consensus 0.2%). The current account balance in the eurozone registered a surplus of €15.7 billion in June. This suggests that Europe remains quite competitive, helped by falling oil prices and a weaker euro. There certainly hasn’t been a set risk theme in today’s Asian session, with the Aussie dollar finding some stability while the euro has slightly declined.

Japan’s Nikkei is outperforming the region with a 0.1% gain driven by a weaker yen. USD/JPY generally remained bid during the offshore session, and has continued its ascent in the Asian session. The pair printed a high of 79.66 today and continues to look quite bullish with the 80 level in sight. The weaker yen has seen the exporters well supported, with some big gains for Pioneer and Panasonic. There are concerns that China will increase property curbs after its new home prices gained in the largest number of cities in 14 months and weighed on the Hang Seng (-0.8%) and Shanghai Composite (-0.9%). After a weak start, the ASX 200 (-0.1%) came off its lows to trade in positive territory, but has since lost its momentum and is relatively flat. With mixed leads in the Asian session, European and US markets are facing a relatively flat to mildly weaker open.

Data releases are limited today but the week gets busier with eurozone PMIs and RBA minutes due on Tuesday and Fed minutes on Wednesday. The political scene in the eurozone also gets active this week with German Chancellor Angela Merkel and French president Francois Hollande meeting on August 23 followed by Greek Prime Minister Antonis Samaras meetings with Ms Merkel and Mr Hollande on August 24 and 25 respectively. The wires have also been buzzing with rumours that Angela Merkel is considering easing Greece's bailout terms. Eurogroup meetings in September could be a more appropriate forum for developments in this regard. As a result, there is plenty of event risk on the way.

After a soft start, the local market recovered to trade as high as 4375. Should the market manage to clear this high, which is now near-term resistance, the bulls will then be eyeing the 4400 psychological resistance ahead of May’s high of 4448.5. This was its new highest trading level since May 7. Ex-dividend falls in Commonwealth Bank of Australia, Telstra and others have weighed on the index today, with 22 points coming out of the local market. Apart from the stocks trading ex-dividend, some of the biggest movers of the day are Macmahon (+6.7%), Western Areas (+3.3%) and Challenger (-2.1%). MAH has surged after its earnings came within guidance and it said it sees 20% profit growth for the year ahead. Reporting tomorrow we have Amcor, Monadelphous Group and Oil Search.

www.igmarkets.com.au
ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>



Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: