Indices: Australian ASX 200

The ASX200 recovered some recently lost ground on Tuesday enjoying broad-based buying but volumes were low, ultimately we saw over 70% of the index close in positive territory. The selling felt a touch exhausted yesterday following the recent aggressive downturn but there may be more bad news waiting in the wings before the weekend arrives:

The ASX200 drifted lower yesterday on apparent nervousness ahead of this week’s US rates decision as economists weighed the prospect of a 0.75% move, or potentially a sledgehammer-style 1% rate hike – only a few months ago the idea of a 0.5% hike was foreign to investors now many believe it could be twice that amount! Markets are developing that self-fulfilling quiet before the storm…