Local market made a steady recovery after flip flopping for the first few hours. US retail data was string overnight while US markets were undecided. Chinese regulatory moves are beginning to bite while the pullback is aimed to get back to pre 2016 levels. The corporate outlook for US is at the best it has been for a long time but the expectations may need to get rebased lower. Local market was driven by reporting season and result read throughs while weak wages growth removed RBA rate hike worries. US politics remains negative for fiscal reform while geopolitical risks have subsided. The market remains in very skittish mode during the reporting season and expected to deliver big swings when disappointed…stay nimble!!! We are expecting updates tomorrow from ABC, ASX, BRG, BXB, COH, EVN, GMA, GMG, ILU, LNK, MGR, QBE, TLS, TTS, TWE, WES and WHC. There were some big lines crossed in TLS and WES ahead of the result tomorrow!!! The best performing sectors were Energy, Telecom Services and Retail while the worst performers were IT, Gold and Health Care.
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