Return of US money
Published in Daily Telegraph September 2006 by John McCarthy
Investors can expect a return to positive trading on the market today and an improved showing from offshore funds as US investors return to the fray after the summer break.
Wall Street gets back to work on Wednesday after two weeks of light US-summer trading, and investors encouraged by recent economic data are expected to shift money into the stock markets.
That should be good news for Australian investors following a sharp rise on Wall Street on the weekend.
With the bulk of profit reports now out of the way, investors will also be able to focus without distraction.
However, there is the meeting of the Reserve Bank board tomorrow with Ian Macfarlane as governor for the last time.
"A few weeks ago, financial markets were betting that another rate hike by the RBA by the end of the year was a near certainty. Now, however, they are much less confident of that occurring," Macquarie said.
Oil also fell below $US70 a barrel yesterday, providing even more cheer for the markets.
Wealth Within analyst Dale Gillham said the end of the reporting season would mean a return of some normality.
"Last week I indicated that I expected the market to break above 5070 in the coming week and this occurred on Thursday as the All Ordinaries index rose strongly," Mr Gillham said.
"The market has now traded up for five consecutive days, so we may see it trade down for one or two days over the week, but I am still expecting it to rise above the high of 5104.90 achieved on July 9 in the next few weeks."
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