Viewpoint: Bullish
Interestingly while the equity market appeared to fall on Brisbane’s lock down fears local bond yields remained strong arguably contradicting the moves in equities
Not that exciting however Morgan Stanley has been a Telstra (TLS) bear for a while now and today they became a Telstra bull, upgrading the stock from Underweight & $3.00 price target to Overweight and $4.00 price.target
Moved to acquire Mortgage Choice (MOC) today as they look to expand their broking business.
Announced China would be implementing a 176% duty on Australian wine imports for the next 5 years, essentially stopping any Australian wine ending up in the market.
The British Pound has been dancing a bullish dance in sync with equities, at this stage “Cable” as its referred to by traders looks poised to make fresh 2021 highs
No major change as the index slowly descends into our buy zone – The VIX (Fear Index) shows investors are becoming increasing complacent towards risk assets.
Australian mining goliath BHP which has major oil interests, has rapidly corrected to our $45 target area.
The $US has quietly rallied to fresh 2021 highs however when we look at the cross rates from the $A to the Pound the 4% bounce feels like its running out of steam and we wouldn’t be chasing current strength.
The MSCI World Index has been trading in a very small 6.6% trading range for all of 2021 while maintaining its clear bullish uptrend shown below, it’s not just the ASX which has been experiencing a very quiet year!
Lastly the sectors top performer JHX which has a substantial exposure to the US market.
