Equity market activity has been characterised by rotation between sectors and markets against a background of a background of steadily firm indices in recent times. This has seen local investors return to the consumer discretionary and Info Tech sectors in recent days.
It’s also a trend that appears to have benefited the overall Australian market this week. After being relatively out of favour for some time, the ASX 200 index has enjoyed a good rally while, with the exception of Japan, other major stock indices have been stalled at higher levels. The question for traders will be whether today another contrarian day is on the cards for the local market. This could see the ASX 200 index push further into the top part of its trading range.
Mining stocks may also be a focus today. Having dropped below $60 the previous day, iron ore markets showed possible signs of basing yesterday. While the spot price made modest gains, Chinese iron ore and steel futures closed higher following news of earlier than anticipated closure of steel mill in Hebei Province. If that continues this afternoon, there’s likely to be some support for the materials sector which was the only one to finish lower yesterday.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.