Banks Up, Miners Down

12.23 AEST, Monday 3 June 2013

Banks Up, Miners Down
By William Leys (Premium Client Manager, CMC Markets)

The Australian market is slightly softer in morning trade, as investors contemplate weak offshore leads.

In the US on Friday, markets plunged late in the session to end sharply lower. The raft of economic data released failed to paint a conclusive picture one way or another and it seems this uncertainty over the actual health of the economy and the subsequent strategy of the Fed triggered the sell-off. There was also month end profit taking and over valuation concerns adding to the downward pressure.

Our banks are posting strong gains. This morning’s MI Inflation gauge reading suggests that inflation remains subdued, which will add weight to the RBA’s easing bias and perhaps in turn reinvigorate the appeal of yield producers.

Going into the afternoon, the direction of the market remains in the balance as the release of retail sales for April came at 0.2 just below expectations of 0.3.

Web: http://www.cmcmarkets.com/

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