Market Flat Despite Positive Leads
11.31 AEDT, Friday 8 March 2013
Market Flat Despite Positive
By William Leys (Sales Trader, CMC Markets)
The All Ords has retreated to trading flat this morning, despite positive global sentiment providing direction for the local market in early trade.
Overnight, the Dow continued its climb to record heights on the back of positive jobless claims data, while markets in Europe maintained gains after the Bank of England and the ECB both opted to keep rates on hold for now.
In the absence of any major local economic news today, investors will keep a keen eye on the Chinese exports and trade balance data for February, due at around 1pm AEDT. An increase in exports beyond expectations will be viewed as a sign of strength for the Chinese economy, which in-turn may extend the steady advance of the materials sector today, as well as support the AUD. Conversely, if the data disappoints, we may finish the last day of the week in the red.
Irrespective of the result, trading volumes are likely to remain tempered, as investors are cautious ahead of the Non-Farm payrolls coming out of the US tonight.