Morning Report Thursday 30th April 2015
Keeping our finger on the pulse as volatility surges
Markets are currently experiencing more activity in a few hours than is normal for a whole week. Yesterday the ASX200 simply got smacked 110 points (1.85%) with banks noticeably out of favour – chart 1. As we have been discussing recently the banks have been primed for a correction and it’s appeared with a bang e.g. both ANZ and Westpac down 6.7% from recent highs.
Short term our banks may be ready for a bounce with Mays dividends looming for 3 of the big 4 but I still feel they are likely to reach much lower levels in coming months.
Its hard short term to pin point exactly what the catalyst has been for the recent plunge in the banks even though it was predicted, usually the reason comes after the event but I am hearing / reading a mixture of the below:
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