Morning Report Friday 16th October 2015
Rate rises and China become almost a distant memory
Good morning everyone and welcome to the start of the weekendOverviewIt's always amazing how quickly markets switch both their focus and perception of factors effecting the value of shares. Only 2 weeks ago markets were bordering on panic due to economic growth concerns, primarily caused by China.With no fresh news and some slightly weaker economic data from the US the psychology has now moved to interest rates lower for longer. The positive about face to "the glass is half full" has led to significant gains in equities as we now enter US reporting season and the focus moves to individual corporate performance. Readers will recall our recent discussions on fear and greed in the markets so we now seem to have moved from fear to evolving greed …. but is it sustainable is the question and if so for how long?With the market leaning on the pessimistic side for earnings the surprises are potentially on the upside to the market. This is further evidenced by the recent market capacity to shrug-off bad news and remain not just stable but move higher eg notably the Bank of Queensland soared after a solid but not outstanding report.Turning to the MarketsMarket Matters called the bottom accurately so what matters now, clearly, is where we go from here after the ASX200 has rallied ~7% in a few weeks:Overseas at a glance
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