Market Matters Afternoon Report Thursday 8th September 2016
Good Afternoon everyone
Market Data
What Mattered Today
The market got hit hard this morning across the board with what seemed like FUTURES led selling. It was indiscriminate and the large capswhere hardest hit. Someone out there was running with the SELL AUSTRALIA thematic today and the futures were under significant pressure from the get go – which obviously flowed through to stocks. A low at 10.30am before a fairly reasonable recovery late in the session saw the market finish down – but not as much as it was.
We had a range of +/- 56 points, a high of 5416 a low of 5358 and a close of 5385 down -38 points or -0.71%
ASX 200 Intra-Day Chart
Selling ticked up a few gears when the index broke below 5400 early on – which continues to be a reasonably important level for the ASX 200. Overseas futures are green, the rest of the Asia Pac region was mixed with no real pockets of major weakness so our index down -65pts – as it was early on was certainly overdone.
ASX 200 Daily Chart
On the economic front today we had the Australian Trade Balance show a lower deficit than expected - 2.41B v -2.65B expected – which is a good thing with rising export prices offsetting largely flat imports. The Aussie Dollar is a major factor here with the +5.5% rally this year in the currency meaning the value of exports go up, although we seevolume of exports decline given the headwind of the higher currency.
Taking this number with the decent GDP print earlier in the week and the Aussie economy seems to be tracking along reasonably well. The September QTR inflation read will be key for rate decisions this year and that’s due for release at the end of October.
That said, the trend in the Aussie is clearly higher and it will take a surprise move by the US Fed to ‘HIKE’ in September for the Aussie to stay below 80c in our view.
Australian Dollar (AUD) Daily Chart
Sectors
ASX 200 Movers
Select Economic Data – Stuff that really Matters in Green
What Matters Overseas
Overseas markets continue to look reasonable. Taking a look at the UK’s FTSE 100, the BREXIT panic seems a distant memory. The ebbs and flows of markets are dictated by fear and greed andclearly the BREXIT was a major fear event. When sanity prevails, the market has continued higher – helped by a weaker currency no doubt.
FTSE Index Daily Chart
FUTURES are pointing to a higher open the
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 8/09/2016. 5:00PM.
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