Morning Report Wednesday 11 November 2015
It’s only a relatively short report today but an important one given the position of the market and what seems to be a nice aligning of our market expectations.
Watching the ASX200 over recent days has been scary as its aggressively corrected 6.3% to-date compared to a minor pullback of 1.6% from the US S&P500. - see chart 1. Locally we've had to contend with a Santos capital raising, a plunge in BHP plus soft banking / gold sectors. Compounding the gloom has been the CRB Index (commodities Index), to which Australia is so linked, continues to weaken, technically still targeting a slight new low in 2015 - see chart 2.
However, if we refer back to the Market Matters morning note on Melbourne Cup Day the usual choppy November price action for the ASX200 was clearly outlined - it's just often surprising when it occurs!
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