Australian jobs and inflation data a key driver as overseas markets plateau

Published 19-JAN-2017 12:24 P.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

With little in the way of firm leads from overseas markets the ASX is likely to be shaped by domestic data, particularly in relation to the release of consumer inflation and employment figures.

While Fed Chair Janet Yellen addressed the Commonwealth Club in San Francisco the comments that inflation was pushing up towards the 2% band and the likelihood of a few interest rate rises per year until the end of 2019 was not new information.

Consequently, it wasn’t surprising to see little movement in the Dow as it treaded water slightly below the previous day’s close of 19,826 points.

The NASDAQ was also relatively flat.

The only significant stock specific trend to emerge was an across-the-board decline in retail stocks with the likes of Target, Wal-Mart and Macy’s all finishing in negative territory. Target was hardest hit as its shares came off more than 5% after the company flagged weaker than expected fourth-quarter earnings.

In Europe, the FTSE 100 was up 0.4% regaining some of the previous day’s losses, while the German Dax rallied 0.5% to close at 11,600 points.

On the commodities front, crude continued its decline, falling from the previous day’s close of US$52.48 to a low of US$50.91 before recovering slightly as markets drew to a close to finish down circa 2%.

Gold gave up some of the previous day’s gains as global markets settled, but it remained above the US$1200 per ounce mark after hitting US$1218 per ounce in early trading.

Aside from zinc, there was little movement across base metals and iron ore was relatively flat.

However zinc moved from the previous day’s close of US$1.22 per pound to US$1.25 per pound, close to the 30 day high, which isn’t far short of the long-term peak that was struck in December.

As US markets drew to a close the Australian dollar was fetching just over US$0.75

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X