US losses may drive local market down
Published in the Daily Telegraph, August 2009
by Jenny Dillon
WALL St was down, as was gold and oil in the US Friday, so it's expected that local markets also will fall when they open today.
The grim picture from overseas would probably spoil the party for local investors who on Friday saw the markets close at their strongest points since October 8.
The benchmark S&P/ASX 200 index increased 25.1 points, or 0.57 per cent, to 4461, while the broader All Ordinaries index went up 28.4 points, or 0.64 per cent, to 4465.1.
On Wall St, the shares fell on gloomy US consumer sentiment, leaving the Dow Jones to finish on Friday down 76.79 points, or 0.82 per cent, at 9321.40.
The slowdown would come as a welcome breather for the market.
Wealth Within chief analyst Dale Gillham said yesterday.
"The market cannot continue to rise without some form of pull back in price, and the longer in time it rises, the higher the probability that the fall will occur," he said.
"Given this, we need to expect the market will fall away soon, therefore investors need to be patient rather than jump in now thinking they are missing out on making profits.”
