11.03 AEST, Wednesday 26 June 2013

Traditional values make a comeback

By Niall King (Premium Client Manager, CMC Markets)

The local sharemarket has emerged from a turbulent start to the week, with early gains in the major sectors this morning on the back of renewed growth optimism from overseas. Following the initial impulse to flee as stimulus reduction became a more imminent concern than had previously been envisaged, markets may at last be coming around to the idea of more traditional reasons to base their positions. Bumper housing data is at the core of a group of increasingly solid fundamentals on the economic front in the US.

Having been under siege recently, the miners have enjoyed a fine start to the day as concerns regarding Chinese growth subside with their central banks commitment to money market stability.

Elsewhere, the improving situation in China appears to have benefitted the Aussie dollar, comfortably holding ground in its new found home in mid-92 US cent territory. However, further strong data from the US will continue to test the resolve of supporters of the Aussie at this level in the short-term.

ends