Morning Report Tuesday 7 April 2015
Finger on the pulse as markets enter a critical phase
After yesterday’s comprehensive look at markets, today I have honed in one some key market factors after a very interesting session in the US last night. The Dow rallied almost 120 points, erasing earlier losses, after comments from a leading US Central Bank Official implying interest rates will rise slower and later than recently forecasted. I am now bullish US equities unless the June S&P500 Futures breaks 2060 ~ under 1% lower. Locally today the ASX200 is likely to be dominated by the RBA’s interest rate decision at 2.30pm, I am expecting a cut along with 75% of people, to 2% so the risk is to the downside if we get no cut - likely to hit stocks for 24-48 hours.Commodities had a better night with Crude Oil rallying over 5% and Gold almost $US20/oz higher. This should clearly help the ASX200 today, especially if rates are cut. My up to date view from here:
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