Macro outlook: China stimulus and US Fed backflip to support commodities in the next 6-12 months as declining global growth drives more central banks to keep easing bias and deliver more stimulus. Growing debt and deficit problems have forced governments to deliver a low risk and low growth agenda to support their political election outlook. The conflicting monetary and fiscal policy settings will continue to prolong the recovery cycle. China has continued to support old industries to keep unemployment in check despite over supply issues. The resource sector is likely to remain resilient till China removes stimulus or US Fed ramps up rate cycle. Energy Sector preferred picks: AWE, CTX, KAR, OSH, WPL. Metals & Mining (Ex Gold) preferred picks: BHP, BSL, FMG, RIO, SFR. Gold Sector preferred picks: EVN, GOR, MLX, NST, RSG, SAR . (VIEW LINK)
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