Good Morning,
Trust that you had a great weekend and Happy 4th of July…
No, it’s certainly not our independence day, but judging from the AUS election results over the weekend,getting legislation passed via the Senate is certainly going to be more difficult.
It was 2010, when we last had a “hung” parliament and markets certainly don’t like “uncertainty”, so expect some nervous days ahead for both the ALP and Coalition…
So who will form government and do we really need a 7th PM in the past seven years?
Certainly cannot be good for Australia’s credit rating………..
All in all, it comes down to confidence and given that both business & consumer confidence have been “fragile” to say the least, the uncertainty is not a positive, short-term….
So what else can we expect this week?
On Friday night, US Stocks again (Dow +45 points) and all eyes turn to RBA decision tomorrow and US payrolls on Friday night….
We will certainly hear more about “Brexit”, but it will be whether US employers added more than 38,000 jobs (last month’s figure), that will be a key driving force….
Expect more headlines regarding fiscal policy, which will further support Gold and Silver
So stay defensive and look for opportunities to buy the banks on weakness
The SPI is down 20 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.
