Viewpoint: Bullish
No change, local bond yields have continued to rise from their late August low, the RBA may be sticking to its guns to hold the cash rate at 0.1% through until 2024 but markets are voting on rate hikes moving forward with the only point of debate being when, not if. Whether we look to Europe, the US or across the Tasman the picture is the same with yields rising:
European equities look very similar to the Dow and ASX200 as they’re not as heavily influenced by Big Tech when compared to the S&P500. Again we remain bullish initially targeting the 4400-4500 area for the EURO STOXX index, a great read through for the highly correlated local market.
US stocks have experienced elevated volatility over recent weeks but the end result has only been some consolidation which we believe is healthy for a market which has been steadily advancing throughout 2021. The Dow remains only a few decent days away from making fresh all-time highs leaving MM still of the opinion that a break off 36,000 is highly likely before Christmas.
The ASX200 is showing ongoing signs of a recovery following its September retracement, the heavy lifting is still being done by the “reopening trade”, banks and energy names a trend MM feels will be ongoing into Christmas. However as we saw on occasion last week the growth names and to lesser extent iron ore miners are gaining strength which…
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EML -14.59%: The card and payments company struggled today after the Central Bank of Ireland responded to their remediation and growth plans. Issues with the PFS Card Services business came to light earlier in the year, a business EML only acquired back in late 2019. Following the CBI concerns, EML presented a remediation and business proposal…
Overnight US stocks enjoyed a strong Thursday leaving the Dow less than 2.5% below its all-time high, we might not be convinced this old stalwart of an index can power through 36,000 without encountering more selling but it does look on track to make fresh highs in the coming weeks / months.
Hopefully its not wishful thinking but CWN rallying when SGR slipped yesterday caught our attention, perhaps another bid is in the offing or more likely the relative valuation elastic band simply stretched just that little too far – we prefer CWN over SGR at current prices but a failure to regain their casino licences will clearly scupper this view.
The US VIX or Fear Gauge as its often referred to remains very comfortable implying professional investors aren’t scared just yet and although some would take this as a reverse indicator of complacency MM leans towards a more bullish interpretation – if stocks can wobble as they have through September without the VIX trending higher we believe the…
The ASX200 rebounded nicely on Thursday as many stocks & sectors continue to rotate on an almost daily basis, on this occasion Tech was the standout winner while the Energy sector took a well-earned breather, almost the exact opposite to the respective moves on Wednesday. It doesn’t feel like “fresh money” is entering or leaving the market which…
