Limp finish for local market despite brighter global outlook

11.16 AEST, Friday 28 June 2013

Limp finish for local market despite brighter global outlook

By Niall King (Premium Client Manager, CMC Markets)

The Australian sharemarket looks set for a limp finish to the week, struggling to build on recent gains in this morning’s session despite signs that the global economic outlook is brightening. Early gains by the Financial sector have been offset by losses elsewhere in a mixed start to trade leaving the market flat.

While the main focus appears to be shifting back to fundamentals, recent moves suggest that equity markets are still reliant on the notion that sufficient easy money will continue to be drip-fed to keep growth ticking over. Consumer spending data from the US was the latest sentiment sweetener to accompany market comforting comments from the Fed on QE.

Following yesterday’s brief revival, the Aussie dollar has lapsed back into its recent comfort range in mid-92 US cent territory, as continuing strong data from the world’s largest economy induces confidence in the US unit. Looking ahead, Monday’s manufacturing data from China is likely to be a key directional intersection for the Aussie.

ENDS

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