Markets edges ahead

11.07 AEST, Friday 17 May 2013

Markets edges ahead

By Niall King (Premium Client Manager, CMC Markets)

The local sharemarket has edged ahead in this morning's session, following a soft overnight lead from the US as the incessant bull run hit the brakes, at least temporarily. With overnight data suggesting the growth picture in the US is not as rosy as first thought, talk of a stimulus wind-back seems somewhat contradictory and possibly premature. In early trade, the Materials sector has led the market higher having been busy erasing some of its recent losses after commodity prices stabilised overnight.

Having endured an extremely turbulent period in recent days, the beleaguered Aussie dollar is teetering around 98 US Cents this morning. With much of the recent decline attributable to US Dollar momentum rather than Aussie weakness, the relative strength of the Australian economy against its peers has many believing that a reversal of the current trend may be imminent.

Looking ahead, a preliminary read from the University of Michigan on consumer sentiment could drive direction this evening.

On the domestic front, Tuesday's RBA monetary policy minutes will be the main focus as the market tries to figure out just how concerned policy makers are about local growth prospects.
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