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Will the Olympics lift the stock market?

Good Morning,

 

Trust that you had a nice weekend and are feeling both relaxed and energised, for what shapes to be another “eventful” week on market.

 

Am sure that you watched a lot of the Olympics and yes, we’re still on top…

 

The AUS reporting season gathers steam with a number of the big names reporting….

 

Who will report well?

 

Who will miss vs. analysts expectations?

 

The good news, as we’ve been highlighting, is that analysts expectations are coming off a low base, the cost of funding globally is cheap (with record low interest rates) and any number that exceeds forecasts, will surely translate into higher stock prices…..

 

So what happened on Friday night?

 

US stocks rallied (Dow +191 points), following stronger than expected payroll figures (255,000 jobs were created last month vs. 170,000 expected)…

 

A very strong result….

What happened Friday?

The Australian sharemarket ended the week on a positive, but a midweek slump led by the banks weighed on the index, which posted its first weekly fall in a month. 

The benchmark index began the week rallying towards 5600, but shed 120 points collectively on Tuesday and Wednesday as the market digested the Reserve Bank of Australia's decision to cut the benchmark interest rate to a record 1.5 per cent.

The index ended the week 1.2 per cent lower, with eight out of 10 sectors finishing in the red.

So… What's on today?

ANZ job ads July, Bendigo and Adelaide Bank results

Gold stocks in focus, with futures down nearly 2%....

The SPI is up 31 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

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