Afternoon Report Tuesday 5 August 2014
The ASX 200 sold off, closing down 22 points, to 5,519 despite positive domestic data out today.
As expected, the RBA left cash interest rates unchanged at 2.5%, noting that muted wages growth (brought about by 5 unemployed people for every job vacancy) should keep a lid on inflation. House price growth has moderated but is still positive.
The Trade Balance for June, reported better than analysts’ expectations, down $1.683B vs. -$2.0B consensus.
The above two points still leaves us bearish on the domestic market in the near-term at present, however, as it is a “stock pickers” market, it is an opportunity to purchase quality stocks (even on its highs).
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