Morning Report Friday 11 September 2015
Yesterday’s price action in our markets suggested the US markets would be down significantly overnight. Instead the DJI was up 76 pts and S&P500 up 10 pts! More evidence that investors need to stand back from these markets and pick the right opportunities.
It is also clear that investors are warily looking forward to the looming Fed decision on interest rates. Markets are pricing in a 28% chance of a hike next week and 59% in December - that would not be a lovely Christmas present!!
With markets potentially slowing down prior to next week, what has caught our eye was Brazil and unusually not for soccer! Standard & Poor's downgraded South America's largest economy to "junk status" which, perhaps, is ominous for similar struggling commodity rich economies like Australia.
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