09.36 AEDT, Friday 25 January 2013
Australian investors more influenced by China’s manufacturing than Apple resultstralian
By Ric Spooner (Chief Market Analyst, CMC Markets)
The Australian market is likely to maintain a firm tone today. Apple’s disappointing sales results were the main
negative factor for US indices overnight but this is unlikely to worry local investors too much. Broader economic
statistics released over the last 24 hours, including China’s PMI and US jobless claims did nothing to disturb the
consensus view of an improving, although moderate economic growth outlook.
To some extent, reports of disappointing iPhone sales are a barometer of international consumer caution. However, iphone
sales also potentially reflect Apple’s competitive position within the sector and some saturation as the smart phone
market approaches maturity.
Microsoft’s results, released after the market closed will provide investors with some comfort that demand in the
overall IT sector is in reasonable shape. The strong performance of Apple and the tech sector which has a low weighting
in the Australian index was one of the factors behind the local market’s underperformance throughout much of 2012. In
the current circumstances the lack of major tech stocks may help our market outperform.
While investors are likely to continue chasing yield, we may see some book squaring from short term traders later in the
day. Traders are often more inclined to square positions prior to a long weekend rather than stay in the market for two
US and European trading sessions before the local market re- opens.
ends