Local market recovered from early losses to finish a slightly negative day on continued commodity optimism. Local market continues to be struck in the narrow trading range since May. The manufacturing PMI an new home sales in the US were negative while services PMI positive. US president threatened to shut down the government if he does not get funding for the wall that was supposed to be paid by the Mexicans. The president blamed the democrats for lack of tax cuts and building the wall when the republicans control all three layers of the government. Weaker economic data and uncertainty from US leadership took the wind out of the sail of the US market. US Fed and ECB comments from Jackson Hole unlikely to deliver strong catalyst to change the dynamics that central banks remain dovish as weak inflation and low wages growth remain a global problem. We see good buying opportunity opening up over the next month as investors over react to negative sentiment…stay nimble through reporting season!!!
Click here for the full report.