Market Matters Afternoon Report Friday 8th July 2016

Afternoon Report 08/07/2016

Market Matters Afternoon Report Friday 8th July 2016

Good Afternoon everyone

Market Data

What Mattered Today

A choppy day for Aussie stocks with the index bouncing around par as traders await the U.S non-farm payroll data due out tonight – which is likely to be a very important print from a markets perspective. Too weak and traders will become concerned about the recovery/strength of the US economy and probably sell equities and buy bonds, yet if it’s too strong we’ll see the market start to price in interest rate hikes nearer term, which could also cause an issue. They’ll be a sweet spot for markets and if we’re hazarding a guess, it should be a number just above consensus which sits at +180k. Not too hot – not too cold but just right!!

Anyway, back to our market today and we saw the tightest range in months of +/-21pts. 5217 low, 5238 high and a close at 5230; up +2pts or +0.05%.

Looking at the banks pretty much tells the story. CBA off -0.12%, ANZ up +0.26%, NAB off -0.20% and WBC down -0.25%....what a yawn! BHP was subdued off just 3c while buyers preferred RIO (+1.94%) but more so South 32 S32 (+5.17%) and Whitehaven Coal WHC (+10.16%)…both of which had cracking sessions.

WHC, in particular, has been on a tear of late, with strong production numbers and a recovery in the coal price seeing them deliver margins well above what they’d previously guided towards. The stock has clearly run hard and as always, we’ve seen a massive swing from excessive pessimism to now – which seems to over-optimism.

Sectors Today

Source; Bloomberg

ASX 200 Movers

What Matters Overseas

….US Non-Farms tonight the main game in town (+180k consensus) – especially given US markets are only a whisker from their all time highs….

FUTURES mostly lower…..

***Keep an eye out for Weekend Report on Sunday morning***

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 8/07/2016. 5:00PM.

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