Sunset Strip | Aussie market bounced back up against the global trend with Iron Ore recovery, China reducing bank borrowing costs, currency recovering and...
Sunset Strip | Aussie market bounced back up against the global trend with Iron Ore recovery, China reducing bank borrowing costs, currency recovering and banking sector downplaying loan restrictions. RBA tried in vain to talk down the currency and the market today....rate cut anyone!!! We remain negative on the domestic economy and expect local / global interest rates to remain low atleast till 2015Q3. We also expect global investors to return to our market with currency stabilising in the short term. We continue to see risk to commodity prices and expect the new equilibrium levels to put pressure on the margins of the high cost producers and the mining services sector. The continued global growth worries will move the flow of funds to the Australian equities with falling bond yield outlook. OPEC maintaining supply and lower growth outlook keeps Oil prices at very low levels despite geopolitical risks...may be to make Shale look expensive...either way the energy stocks are under pressure.Trading idea of the day: CarSales.com (CRZ). Tuesday's Retail Therapy Pick: Woolworths (WOW). (VIEW LINK)
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