Indices: Australian ASX 200

Last week saw the ASX200 experience a quieter time which happily saw it manage to closer higher for the first time since April, it’s a tough call to guess how local stocks will spring out of the blocks this morning after the election but sentiment was certainly improving last week. In the bigger picture the local market is continuing to rotate between 6750 and 7650 which from a risk/reward perspective suggests investors should be proactive at the respective extremes.

The ASX200 was clobbered -1.65% yesterday following savage declines on Wall Street, only the healthcare & gold names caught any semblance of a bid while consumer stocks followed their US peers sharply lower around concerns of rising wages / operating costs. Equities are continuing to adjust to higher inflation and interest rates but we believe it’s now predominantly fears of a potential recession on the horizon…