Good Morning,
Yesterday was a good day on markets…
Lots of green, majority of sectors were up, risk was certainly “back-on”…
Let’s hope that the momentum continues and the index breaks through 5,000 and stays above…
We believe that the trend is likely to continue as the market looks like it has formed a base and is on the verge of being “re-rated” …
It was Australia’s GDP q/q of 0.6% vs. 0.5%, which helped push or index higher. Household consumption was the main contributor and spending by consumers was good.
Australia in a recession? Not yet….
Just a quick reminder that our Peak “Candy Crush” Opportunity will close today. If you would like to bid, please read the prospectus and presentation carefully or get in touch.
So how did we go last night?
US Stocks were mostly “flat”, after the Dow rallied over 350 points on Tuesday night, largely driven by talks of further global stimulus….
“We’re seeing momentum slow,” said Joe Bell, a Cincinnati-based senior equity analyst at Schaeffer’s Investment Research Inc.
“We’re starting to see people talk about an accelerated Fed rate hike schedule. Just a few weeks ago, most expectations were much further out. With data coming in much stronger than expected, and the positive reaction from the stock market, the Fed outlook has changed.”
So… What's on today?
Trade Balance Jan (11:30am)
Local earnings: Ausenco, CBG Capital, Cockatoo Coal, Veda Group
Overseas data: Caixin China services PMI (Feb.), Hong Kong retail sales (Feb.), US jobless claims (weekly), US productivity and labor costs (fourth quarter), Markit US services PMI (Feb. final), US factory orders (Jan.), euro-area services PMI (Feb.), UK services PMI (Feb.).
Overseas earnings: H&R Block, Broadcom, Kroger, Hewlett Packard Enterprise, Canadian Natural Resources, YPF SA, Adidas, Continental AG, Koninklijke Ahold NV.
Stocks in focus
Samarco Mineracao, the iron-ore venture owned by Vale and BHP Billiton, reached an agreement with Brazilian authorities to pay for damage caused by a tailings dam spill.
The SPI is up 13 points this morning .
Niv
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.
By Niv Dagan
