Consumer stocks in general will be very interesting today with traders positioning ahead of tonight's Australian budget

Chris Weston

Pepperstone

Consumer stocks in general will be very interesting today with traders positioning ahead of tonight's Australian budget. A number of the measures have been pre-leaked, but we could still easily get some surprises. Expectations are that the underlying budget deficit for 2014/15 should be for a deficit of around $26 billion, which would be $8 billion lower than the original estimates from the governments Mid-Year review of $33.9 billion. Ultimately fiscal policy should be tightened by around 0.25% of GDP, which when combined with other measures should lead to total fiscal drag of 0.50%. It seems logical that this budget will be fairly austere in a bid to front load the fiscal tightening, in a bid to put the Abbott government in a tidy position to ease policy through targeted tax cuts as we head into the 2016 elections.


Chris Weston
Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment