Local market was hit again on the open before making another climb out of the lows of the day as global optimism on US fiscal upside unwinds. Market on stretched valuation was relying on optimism…now it ran into reality of the political risk….we have moved from “Trump Bump” to “Trump Dump”!!! There are more tweets and more revelations and now talk of impeachment…probability is very low but the sentiment to move on a reform is almost gone. Fiscal change in the US is now looking far away…2018 at the earliest and mid-term elections will put that to a test. Global markets are unlikely to take big position on a Friday after recent bashings…sentiment will be on hold ahead of the weekend. Brazilian equity and bond markets fell 10% before recovering slightly after more allegations of bribes and corruptions at the highest government levels were flashed around the media while weak economy and corporate results crashed the currency back to GFC level and forced the regulators to close the market for 30 minutes. Iranians move into their Presidential election campaign…the current reformist President is struggling with the poor being left behind in the recovery (i.e. common global theme)..may revert back to hard right and add to the global uncertainties. The best performers were Metals & Mining, Health Care and Telcos while Gold, Industrials and Banks were the worst performers.


Click here for the full report...





Please sign in to comment on this wire.