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


A shot of jungle juice

15.09 AEST, Thursday 13 September 2012

A shot of jungle juice
By Ben Taylor (Sales Trader, CMC Markets)

The markets are waiting in suspense before tonight’s FOMC meeting. Expectations are running high that another round of stimulus will be provided in the form of additional quantative easing and an extension to the zero interest rate policy.

The consensus is that an open ended round of bond buying will sterilise upcoming American Fiscal cuts and reduce US unemployment closer to 7%. Despite the overwhelming majority of market participants believing we are in for a shot of jungle juice overnight, not many are willing to venture into the wild before the event.

It seems no one wants to take a big position when the markets are at the top of their recent range. There is a risk that the bond buying program falls short of expectation, if that happens we would expect to see a quick fall in risk assets which would play havoc for our miners.

The market could be playing out a case of buy the rumour, sell the fact leading into what has traditionally been a seasonally very chopping period of September trading.

Rumours of coal price discussions being reached at lower prices today have done little to affect investors readying themselves for tonight’s FOMC meeting by purchasing Aussie dollars over the index. Expect to see the Aussie dollar continue on its path higher if the FOMC meeting "brings the goods".


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>

MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>

DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>

Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>