Good Morning,
Happy Monday!
Yes, we made it back in one piece after our few days down in the wilderness (for those that haven’t hiked Wilson’s Prom, I would highly advise you to head over), as the countryside is incredible…..
It’s always great to get some fresh air, recharge the batteries and spend some time in nature….
So what can we expect this week?
The “big-one”… the FOMC federal meeting that will divide economists, analysts and central banks…
Will the US fed, raise interest rates in September or…. Will they sit on their hands and “talk-the-talk?”
We feel that our friend Yellen will once again “sit on the fence”, eating cheeseburgers and that the US fed will not raise interest rates in 2016
what will markets do?
Rally…..
Driving a sharp rally in commodities and “risk-on” assets, to end 2016 on a high….
On Friday night, US stocks fell (Dow – 80 points), as Crude oil fell (-0.8%)…
In Europe, The Stoxx Europe 600 Index capped its worst week since June, with Deutsche Bank plunging 8.5 percent after saying the DOJ is seeking $14 billion to settle claims of mortgage-backed securities sold during the housing boom.
In Australia, focus will be on energy producers and JBH, which unveiled on Friday its intentions to buy The Good Guys… technically, the chart looks strong, so the positive momentum should see some further upside.
We are also keeping a close eye on one of Peak’s positions, EMC, on the cusp of a breakout higher…
one to certainly add to your watch list.
The SPI is down 18 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
