Recommended.co.nz | Guide2.co.nz | Voxy.co.nz | Gimme.co.nz
Homepage | login or create an account

RBNZ cuts to spur trading

Read More:
Contributor:
Fuseworks Media
Fuseworks Media

By Michael McCarthy (chief market strategist, CMC Markets)

The RBNZ has cut interest rates to 2.00% this morning, and signalled further cuts to come, setting up a sentiment inspired rally at the open in Australia. This may counter-balance weaker commodity prices overnight. European and US share markets provided little guidance, trading slightly lower on reduced volumes.

Unusually both oil and gold fell overnight. This synchronous activity from commodities is usually fuelled by USD moves, yet it was largely still. Further illustrating the unusual overnight session, the AUD rose above 77 US cents despite the drops in commodity markets.

This most likely means local factors will again be the key driver of market activity today. Telstra has missed earnings forecasts by around 10%. However, the announcement of a $1.25 billion buy-back by tender may mollify shareholders, although it seems to fly in the face of management commitments to invest in the business. Other company reports due today include fund manager Magellan, property conglomerate Goodman Group and veterinary services group Green Cross.

Credit Card Comparison TablesCompare Credit Cards - Independent interest rate and fees comparisons for New Zealand banks.

About guide2.co.nz : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.