NZ dollar retreats as Spanish optimism fades, US stocks fall 12 Jun 2012
- Hutson, Reeves seek SGM to vote on Janes ousting from Abano Business
- MARKET CLOSE: NZ shares rise on election speculation Business
- NZ dollar climbs to 2-week high vs. A$ on Aust CPI Business
- Gordon Campbell on the Shane Jones departure Columns
- Equity crowd funding carries risks, high failure rate Business
- McDonald’s NZ annual sales rise 5.8% Business
- NZ migration rises to 11-year high in March as fewer kiwis leave for Australia Migration
- Germany jumps to NZ’s fifth largest tourism market Travel
- Millennium & Copthorne mulls capital return Business
- MARKET CLOSE: NZ shares rise on Genesis sentiment Business
The New Zealand dollar fell more than half a US cent as optimism over Spain's 100 billion euro lifeline faded after questions were raised about who is going to pay for the bailout, sapping investor confidence and pushing stocks on Wall Street lower.
The kiwi fell to 76.87 US cents at 8am from 77.65 cents yesterday at 5pm. The trade weighted index declined to 70.15 from 70.48.
Stocks on Wall Street fell as investors reassessed the plan to bailout Spain's banking system, with the Standard & Poor's 500 index dropping 1.3 percent to 1308.93. European policymakers are yet to clarify whether the loan granted to shore up Spain's banks will come from the region’s permanent support fund, the European Stability Mechanism or its temporary European Financial Stability Fund.
"Overnight we have seen various calls from Germany and Finland that the money should come from the European Stability Mechanism," said Stuart Ive, currency strategists at HiFX. "The New Zealand dollar is taking its lead from overseas and it means we are seeing a risk-off scenario - at the moment the kiwi has the potential to go as low as 76.20 US cents and there will be more risk towards the end of the week with the Greek elections."
Spain’s rescue comes a week before Greece’s second round of elections on June 17. The result will be closely watched by markets in the event voters deiced to elect a government that decides to leave the region’s shared currency.
The package has also moved Italy into the front line on concern it may be next to succumb to the debt crisis. The yield on Italian 10-year government bonds rose 27 basis points to 6.04 percent, the biggest daily rise since Dec. 8, according to Bloomberg.
Germany, the Netherlands, Austria and Italy will all sell government bonds this week. The Netherlands will sell up to 2.5 billion euros of 2033 bonds on Tuesday, while Germany is set to offer 5 billion euros of 2022 bonds on Wednesday.
New Zealand's accommodation survey for April and electronic card transactions for May are scheduled for release by Statistics New Zealand this morning.
The New Zealand dollar was little changed at 77.87 Australian cents from 77.81 yesterday. The kiwi rose to 61.56 euro cents from 61.45 cents and dropped to 49.64 British pence from 49.90 pence. It sank to 61.04 yen from 61.83 yen.
23 Apr 2014 News
An East Coast iwi says they are concerned the Crown has not made good on its promise to return their wharenui – the oldest... more
23 Apr 2014 Business News
Article - BusinessDesk Equity crowd funding, latest step in much-hyped social capital, carries risks, high failure rate By... more
22 Apr 2014 Entertainment
Film and Stage Producer/Director Craig Hutchison, is pleased to be representing New Zealand at the Sunset Film Festival in Los ... more
17 Apr 2014 Entertainment
The winner of the fourth annual Taite Music Prize 2013 is Lorde for her album ‘Pure Heroine’ released on Universal Music... more
7 Apr 2014 Property
April 7 (BusinessDesk) – New Zealand property values increased at the slowest annual pace in six months in March as lower... more
23 Apr 2014 Migration
April 23 (BusinessDesk) – New Zealand migration rose to an 11-year high in March, the second-highest gain on record, as fewer... more
28 Mar 2014 Migration
Citizens of Croatia aged between 18 and 30 will soon be eligible to apply for a New Zealand Working Holiday Visa, giving them the... more
23 Apr 2014 NZ Tourism
With 9,424 extra arrivals for the 12 months to the end of March, Germany has overtaken Japan to become New Zealand’s fifth... more
22 Apr 2014 Sport
The New Zealand Open team departs today to commence their World Cup campaign in Europe. Their first assault will be on the ICF Canoe... more
23 Apr 2014 Opinion
Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and... more
23 Apr 2014 Appointments
Prime Minister John Key today announced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The... more
17 Apr 2014 Appointments
April 17 (BusinessDesk) – Bank of New Zealand, the local unit of Australia’s third-biggest mortgage lender, named the... more
15 Apr 2014 Recruitment
The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its ... more