Month: January 2015
The Australian equity market is performing exceptionally at present, up around 1% in recent weeks, while the Dow was down 5% – both at yesterday’s close. At a glance, this would seem crazy as the Bloomberg Commodity Index hit a 12-month low last night (see chart 2), but there are other influences that are very much in play and should not be ignored.
• It was a choppy session in the ASX 200 today; having ended 19 points higher at 5688 with the Energy sector, surprisingly the strongest link.• The gold sector underperformed the broader market; Newcrest Mining (NCM) closed 0.8% lower at $13.59 and Regis Resources (RRL) down 3.3% at $1.895.• Commonwealth Bank (CBA) continues to reach for the stars, ending up 57c at $89.33 after touching another all-time high of $90.00! Today, we bought another bank as mentioned to our subscribers, live.• Telstra (TLS) ended 3c higher at $6.50 as the yield play continues.• Beach Petroleum (BPT) closed 6.7% higher at 96c after Seven Group (SVW) announced it has acquired a 3.5% stake in BPT.• Please watch out for the Hickman Report tomorrow.
I have spoken to a number of subscribers over recent days who have commented that my last few morning reports were news, not opinion focused. This is great feedback as it’s exactly what we are NOT trying to achieve, but it’s a reflection that I have been a little 50-50 short term and with the exception of the recent Telstra (TLS) purchase devoid of opportunities.
Will BHP follow Caterpillar’s poor company result?
**Please view our midday commentary on Interest rates and Telstra buy (TLS), plus any opportunities in the commodities space?**
Comprehending negative interest rates and potential ramifications
• The ASX 200 extended its rally to its fourth straight day. It ended 52 points higher and was clearly a “dividend frenzy buying” as anticipated, the yield players such as Commonwealth Bank (CBA) ended up 1.6% at $87.63 after hitting an all-time high of $87.65. Telstra (TLS) also rallied, ending the day 1.6% higher at $6.444, hitting a +14-year high.• In the iron ore space, Fortescue Metals (FMG) continued its descent and ended its day down 2.4% at $2.08, as it seems investors switched some of their positions into the bigger players, such as RIO Tinto (RIO) down 0.1% at $56.80 after trading as low as $55.21 this morning.• The gold sector closed weak, Newcrest Mining (NCM) ended down 1.7% at $13.56 and Regis Resources (RRL) unchanged at $2.00. • The Energy Sector continues to underperform the broader market, with Oil Search (OSH) ending its day down 3.4% at $7.66 and Santos (STO) down 3.1% at $7.56.• ResMed (RMD) extended its gain today, up 7.4% at $8.38 today and up 13.6% since announcing a better than expected 2Q2015 result.
Central banks are clearly winning the battle, the war has much further to run!
• The ASX 200 rallied as expected, ending 82 points higher at 5502 as bets on the RBA to reduce rates in the near future builds.• The yielding stocks performed well, with Commonwealth Bank (CBA) up 1.2% at $86.23, ANZ up 1.4% at $32.20 and Telstra (TLS) up 1.1% at $6.34.• China manufacturing hindered for 2 months in a row, with its HSBC/Markit Flash PMI reported at 49.8 in January, 50+ is an indication of a positive economy.• The Oil market surged today, following the passing of the King of Saudi Ariabia, will there be a change in policy soon?• Please watch out for the Hickman Report tomorrow.
Will Australia follow Canada and slash interest rates?
Really bullish, there's more to go in the reflation rally
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