Afternoon Report Monday 28 April 2014
The ASX200 had a choppy session today, closing up 5 points, after hitting an intraday high of +17 points.
There were two key headlines which reversed gains posted earlier in the day:
Iron ore futures were trading limit down in Asia, sending BHP -1.1% to $37.87, RIO -1.5% to $62.06 & FMG -4.1% to $5.12
The International Monetary Fund (IMF) downgraded Australia's growth outlook for 2014 & 2015.
The big 4 banks outperformed the market ahead of ANZ kicking off banking reporting season this Thursday. We believe the banking sector will soon start under-performing the broader market.
As expected, the gold sector had a short term bounce with Newcrest (NCM) closing up 4.8% to $10.74, however, we remain bearish this sector over the medium term and would not buy at this current level.
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