Almandin wins the cup – RBA holds rates steady – Chinese economy gains momentum
What Mattered Today
The RBA didn’t cut rates, Chinese manufacturing data was better than expected continuing a good recovery from the Chinese economy and ALMANDIN won the Melbourne cup pocketing cool $3.6m…here’s the rundown of the cup and importantly, the prize money
The RBA was never going to cut rates, with the market pricing just a 4% chance ahead of the decision. The statement pushed more of the same and it seems the RBA is now on hold for the foreseeable future. As we’ve written numerous times, we think the rate cut cycle is now over, the low on rates is now in at 1.50%. The local ‘yield trade’ is telling us that, as are interest rate futures – economists are slowing coming around.
In terms of the Chinese Manufacturing data, today’s PMI readings suggest that the Chinese economy has gained some traction with the Caixin (old HSBC number) manufacturing PMI jumped in October, from 50.1 to a 27-month high of 51.2. The consensus was 50.1 while the official manufacturing PMI also beat expectations, rising from 50.4 to 51.2 v 50.3 expected. Recent data flow + commodity prices are all suggesting that the Chinese economy has bottomed and building momentum.
And finally – in the most important print for the day, we picked BIG ORANGE on the nose, which came 10th and WHO SHOT THE BARMAN for place, which came 5th – no luck from our side, however, we’ll ‘pony up’ again next year.
On the market today, we had a range of +/- 42 points, a high of 5313, a low of 5271 and a close of 5286, off 31pts or -0.59%.
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What Matters Overseas
FUTURES – look fairly mixed at this stage.
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy.Prices as at 1/11/2016 5.25PM
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