The ASX200 slipped away 0.5% on Tuesday after the RBA rate hike, no surprises really considering that while the majority of economists were calling the 0.25% move it wasn’t fully baked into bond prices hence the small intra-day rally in yields and the $A. Considering how far local stocks have rallied from both their October low and overall proximity to an all-time high we feel it’s likely they will struggle over the coming sessions.
- No change, we continue to look for the local market to rally in a “3 steps forward, 2 back” fashion but the time to de-risk is approaching fast.
The SPI Futures are pointing to a drop of -0.5% early this afternoon following fairly broad-based losses on Wall Street.
MM is neutral to mildly bullish on the ASX200 into Christmas
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