Afternoon Report Tuesday 3 June 2014
The ASX200 ran its own race today, being sold off across the board closing -39 points despite the Australian current account balance beating expectations and positive leads from Hong Kong and Tokyo.
This selling was les by the SPI (Share Price Index) futures market, which traded at a discount to fair value for most of the day.
The selling was even across the board but noticeably the Retailers underperformed.
The RBA left interest rates unchanged at 2.5% while the HSBC China Manufacturing PMI data was released below analysts’ expectations.
The SPI is often the preferred vehicle of professional traders as it represents a basket of stocks within the ASX200. One general trading tip I pass on to people when I teach is “beware a market trading at a discount to Fair Value”.
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