Aussie market had another volatile start before moving slightly into positive territory by the end mainly due to Banks after that unbelievable unemployment data. ABS unemployment data is farcical. To put things into perspective, 58,000 new jobs in the past month means that on a population adjusted basis, we are creating close to 4 times the amount of new jobs as US. The biggest risk in these fairy tale employment data is that RBA will end up moving late to the party and the economy will take even longer to recover. It looks like the global investor selling pressure came off on Tuesday, but they still continue to hold the market to ransom while currency remains above mid 60’s. In the last few days the local investors have moved to pick up the bargains opened up by the global investors selling out on currency worries. Banks, Health Care and Small Caps are the leading thematics of choice. US jobless claims and US Fed speeches out tonight and that will set the scene for our markets tomorrow. (VIEW LINK)
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