Market Matters Afternoon Report Friday 10th June 2016

Afternoon Report 10/06/2016

Market Matters Afternoon Report Friday 10th June 2016

Good Afternoon everyone

Market Data

What Mattered Today

A few big lines went through the FUTURES market this morning which put pressure on stocks – and the index started out weak as a result. From then on there wasn’t much impetus for the market to recover leading into a long weekend. A fairly big range of +/-53pts. 5294 low, 5347 high and a close at 5312; off -49pts or -0.92%.

We’ve got the Queens Birthday long weekend so no trade Monday and we see a raft of Chinese economic data out on Sunday; Expectations here;

Source; Bloomberg

We suggested yesterday afternoon that the $US looked poised for some upside and that would put pressure on commodities. BHP fell -4.13% today closing at $18.80 after hitting resistance yesterday at $20. RIO wasn’t far behind dropping -2.99% to close at $44.08. It’s often the case that traders sell to take risk off the table when China has important economic out over a weekend – especially when our first chance to react to it is not until Tuesday.

Amcor (AMC) continued to drop today down another -2.36% to $14.50 after yesterdays very weak trading update. We covered the details in yesterdays note however it’s an example of a well loved/heavily owned stock, trading on a high multiple that disappoints the market. We usually see a very sharp sell off followed by an extended period of underperformance. We expect the same here.

Sectors Today

Source; Bloomberg

ASX 200 Movers

What Matters Overseas

A huge week on the international front coming up starting with Chinese economic data on Sunday as outlined above. Headlining the ticket next week will be the June FOMC meeting on Tuesday and Wednesday in the U.S with the press conference held Thursday morning our time. The market is pricing no change for US rates however the commentary/discussion points will be key to get a feel for the likely direction of rates in the months ahead. We also have the Bank of Japan (BoJ) meeting and of course the UK referendum coming up on June 23.

Given all the likely market moving data due to drop shortly, its somewhat surprising that volatility is yet to move meaningfully higher. We’ll look at theme in the weekend report on Sunday

Global FUTURES Markets as @ 4.44pm

Source; CNBC

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Regards,

The Market Matters Team
Level 12 28-34 O'Connell St
Sydney, NSW 2000.

All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 10/06/2016. 5:00PM.

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