Local market made an unconvincing positive day after US market lost steam on the tax reform agenda release. US tax reform agenda was a yawn as expected. It looked like a high school project but with less detail. It was a one pager that stated pre-election slogans with not much detail or funding options. The market is assuming that this will be the starting point for negotiations…as the current options will blow out the debt and blow out inequality. It would be hard to see Republicans with mid-term elections buying into this without changes. There was no mention of infrastructure or the wall…and there is no funding for both either. Industrials, Health Care and Banks lead the way higher while Resources were the underperformers with Energy taking the big hit after local government talked up regulation to keep local gas market supplied. Backward looking data continues to support the housing market and results from MGR and SGP were strong. Wesfarmer’s sales update shows that the supermarket wars are in play and margins will be affected for everyone.


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