Scoop has an Ethical Paywall
Markets in wait and see mode
Markets in wait and see mode
By Ric Spooner (Chief
Market Analyst, CMC Markets)
The stock market is likely to strike a subdued tone in early trading as traders wait for data on China’s trade performance and US jobs growth.
The onset of the US quarterly reporting season also has investors in wait and see mode. The big increase in stock market price earnings valuations in developed economies over 2013 means that markets are now potentially very sensitive to misses on earnings expectations.
Alcoa has started things off on the wrong foot by missing expectations in its profit announcement released after the US market closed. This is likely to add to the subdued tone on the local market, particularly in the resource sector which will also be impacted by lower overnight commodity markets.
Investors are waiting on the release of China’s trade data after further moderation in the manufacturing PMI’s released at the beginning of the month. Recent softness in resource stocks has been at least partly attributable to growing concerns that the pace of economic growth in China has been softening.
ends
Bill Bennett: Fixed Voice Rules Head For Deregulation
UN Department of Global Communications: United Nations Proposes New Global Dashboard To Measure Progress Beyond GDP
Banking Ombudsman Scheme: Fraud Check Delays Well Worth The Inconvenience, Says Banking Ombudsman
Asia Pacific AML: NZ’s Financial Crime Gap - Beyond The 'Number 8 Wire' Mentality
Westpac New Zealand: Kiwi Households Adapting Despite Widespread Cost Pressure Concerns, Westpac Survey Shows
University of Auckland: Kids’ Screen Use Linked To Long-Term Deficits In Self-Control And Attention
