5 charts we are watching very carefully and why
Two macro events are unfolding this week that are likely to determine the medium term direction of equities. Firstly, this morning the Reserve Bank of New Zealand (RBNZ) cut interest rates from 2.5% to 2.25% when most economists were predicting no change. They have also stated that further cuts may be required to increase inflation / economic activity. As a result the Kiwi dollar has slumped. Of course our own RBA is likely to watch the results of market action over the coming weeks very closely as the $A rises (against their wishes).....further rate cuts in Australia may still be a possibility. Secondly, in less than 24 hours Mario Draghi is talking with virtually all economists expecting the ECB (European Central Bank) to cut rates; BUT European stocks have rarely responded positively to recent actions by the ECB. Nevertheless, the influence on global currencies is going to be fascinating to watch. Click through for the 5 charts we are watching (VIEW LINK)
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