Local market bounced hard as global investors jumped on our banks on the currency bet going into US Fed meeting. The market is worried that US Fiscal delays and patchy economic data to drive a downgrade in US Fed outlook and bring down the USD. AUDUSD likely stay strong on relative basis while stronger Yen is negative for Japanese markets. We saw money coming out of Japan and running into Australia on the currency bet ahead of the Chinese industrial production data…steel stocks were in fashion as well. The interesting mix is that Gold is being priced for stronger USD while Banks are being priced for weaker USD…one of them is right and one of them is wrong!!! The best performing sectors were Banks, Property and Energy while the worst performers were Telecom, IT and Miners. The best performer on the stock front was MIN on broker upgrades while some of the gold stock buck the spot gold trend to go higher. This week is setting up for big macro days on Wednesday and Thursday. Wednesday is industrial production from China, Japan and EU while US inflation and retail sales will be watched. Thursday morning will be all about US Fed update and then local employment market update.
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