Morning Report Tuesday 14 July 2015
The US Looks Good For Now, but The ASX200 Has Headwinds
Global Equity markets surged yesterday on news of a Greece resolution, unfortunately this was after the Australian market closed and we failed to join the party yesterday. In all likelihood the Australian market will play catch up today, with the futures indicating an opening around 80 points higher (1.5%), unfortunately the local market is very vulnerable to any mention of higher bond yields going forward. With China stabilising over recent times and actually managing to rally 16%, the short term headwinds appear to have vanished for global equities and we anticipate a “blow off top” is the most likely scenario in the US. At MarketMatters, we have been predicting a decent correction for US equities in 2015 and rising interest rates in the US still appear to be the likely catalyst for such a correction. Such a move will potentially be harder felt by our local market.
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