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

 

Markets dominated by position squaring before German court

Markets dominated by position squaring before German court decision

By Ric Spooner (Chief Market Analyst, CMC Markets)
11 September 2012

Precautionary book squaring in advance of the German court and Fed decisions later this week was the dominant theme of US share markets last night. Australian investors are likely to follow suit over the next two days.

After the large rallies of recent weeks, investors face risks in both directions with these decisions. Although a favourable ruling on Germany’s ability to fund the Euro bailout funds and a large Fed monetary initiative would be positive for markets, there is now plenty of scope for markets to fall if either of these decisions disappoints in a material way. In these circumstances, many traders will prefer to wait for the outcome before deciding how to position themselves in the market.

Resource stocks with exposure to copper may be a highlight today. Investors will be encouraged by the rally in copper prices over recent days. The demand/supply balance in the copper market is relatively even leaving it is well placed to benefit from demand improvements that may flow from China’s infrastructure stimulus program and additional monetary easing by the US Fed.

www.cmcmarkets.com

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>




Stats NZ: Card Spending Sees Strong Growth In May

Seasonally adjusted card spending rose by $189 million (2.3 percent) between April 2021 and May 2021, Stats NZ said today.
Spending rose across all industries for the first time since New Zealand moved to level 1 in June 2020... More>>




Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>