Afternoon Report Wednesday 23 July 2014
The ASX 200 closed 33 points higher today, off its highs of +56 at one stage, with corporate and economic activity helping trading back to average daily volumes.
BHP pushed the market higher early in the session, providing strong second quarter 2014 results, however drifted lower and closed from off intraday highs back towards the US market close of $38.98.
The banking sector rose modestly with CBA closing up 30c to $81.56 after announcing it has cut 0.7% from its five-year fixed mortgage rate to 4.99%. Short term, we see the banking sector risk to the upside after CBA’s comments above.
The June CPI data was released this morning, in line with expectations besides the trimmed mean beating analysts’ expectations confirming our interpretation of the RBA’s Glen Stevens’ comments from yesterday that a rate cut is unlikely in the near future, hence the market drifted lower towards the afternoon of the session.
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