Market moved up again on weak sentiment with fundamentals remaining negative. Geopolitical risks in Turkey and Germany will add to the uncertainty for global markets. Local markets have reached 5600 again and weakening local economic outlook and emerging market risk will weigh on the index. The local market is at the mercy of the overpriced US market and we expect that to start to unravel in early Jan as the US tax period ends in December. The stronger the yields, the strong the USD, the more pressure on Emerging Markets to raise rates to keep capital….the lower the growth outlook for Emerging Markets and demand for commodities. For the full report… (VIEW LINK)
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