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Is 2016 the year of the Gold, the Silver or the Lithium?

Good Morning,

 

Global markets are being extremely resilient, especially with so much uncertainty…

 

It appears that bad news, is good news at the moment and this is an excellent sign.

 

Sure, there is “talk” of stimulus from other central banks… but this is all pure speculation…

 

Yes, the US reporting season has been well received (but remember, analyst expectations are coming off a low base) and Debt:GDP ratios of G-20 sits >100% and in China >250%...

 

What will happen when these countries must refinance their debt?

 

Interest rates won’t remain low forever….  Or will they??

Last night, The S&P 500 Index closed at a record for the fifth time in six days, as technology shares rallied amid deal activity while corporate earnings spurred optimism that results this season will be sturdy enough to help sustain equities at record levels.

Yesterday in Oz, Shares extend their winning streak to eight in a row after shrugging off the weekend's dramatic events in Turkey.

 

The ASX 200 added 29 points, or 0.5 per cent, to 5459. Futures trading had suggested a weak start to the day, but instead the bourse climbed tentatively at the open before gaining in confidence through the session.

All segments of the ASX climbed, aside from miners, where falls of around 0.8 per cent for BHP and Rio and a decline of 2.6 per cent for Fortescue. Gold miners including Newcrest nudged higher, though.

The big banks were all higher, and Woolies was a standout - adding 2 per cent, while Wesfarmers was up 0.6 per cent.

 

Consumer discretionary were the best movers, with Aristocrat Leisure up 3.1 per cent and Tatts 2 per cent, while Domino's and JB Hi Fi also did well.

 

What should we expect today?

·         SPI futures down 3pts or 0.1% to 5414

·         AUD +0.3% to 76.01 US cents

·         On Wall St, Dow +0.1%, S&P 500 +0.2%, Nasdaq +0.5%

·         In Europe, Stoxx 50 -0.3%, FTSE +0.4%, CAC -0.3%, DAX flat

·         Spot gold -0.6% to $US1329.25 an ounce

·         Brent crude -1.4% to $US46.94 a barrel

·         Iron ore -2.7% to $US56.86 per tonne 

What's on today?

·         RBA minutes @1130

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.

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