No reason to sell

In the absence of reasons to do otherwise, buyers have been active in most sectors of the market this morning, delivering a firm open for the ASX 200 index.

Investors do not see either the prospect of another election in Germany or Janet Yellen’s resignation as changing the balance of risk for global equities.

The German election result was always going to make formation and management of a coalition government difficult. While another election may prolong uncertainty, it does create the possibility of voters delivering a more workable outcome.

Markets appear to have anticipated Janet Yellen’s resignation. However, the significant number of vacancies on the Fed Board means the question of who will be appointed could become a significant focus for markets. As news emerges of who the new appointees could be, their experience and philosophical leanings could alter the market’s outlook and confidence.

It would be hard to describe the figures unveiled by A2 Milk at his morning’s AGM as anything other than impressive. Despite the Company’s plans to increase costs over the remainder of the year, a 138% increase in profit for the first 4 months has seen the stock rally further this morning.