Sunset Strip | Aussie market started positive and kept edging higher with China optimism and domestic rate cut outlook
Sunset Strip | Aussie market started positive and kept edging higher with China optimism and domestic rate cut outlook. RBA is the main game for domestic market now with 50/50 split on rate cut tomorrow. We do not think they should cut and read RBA and Interest Rates section on page 2 for our reasons. The volatility index has bounced from the yearly average while the currency is now just below 78 cents. Market is running on yield chase and any delay by RBA will see some profit taking. RBA has to balance global macro movements, local asset bubbles and potential stimulus in spending from rate cut. We will wait and see!!! Stocks that did well today were gold and copper resources and high yielding media and property stocks. Over the past 2 years that strong positive February returns leads to negative March returns while Mining stocks have seen profit taking in March since the China GDP growth outlook fell from 10% in late 2010. We have had nearly 10% YTD and just over 6% in February. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...