Market pushes higher

Market pushes higher

By Ben Taylor (Sales Trader, CMC Markets)
9 October 2012

The Australian market has pushed higher today on the back of gains made in China, investors buying back into Aussie dollar assets and Iron Ore’s rally overnight.

Our market is now topping out technically and will need to see enhanced prospects of economic growth and decreased macro risks to push our markets higher in the near term.

Thursday’s employment figures will be closely observed as a key indicator for November’s interest rate decision. As the Australian dollar edges stubbornly higher towards its pre-cut position the chance of another RBA November cut increases.

The rally in Iron Ore prices has put wind in the sails of mining and energy plays today. At over $110/tonne we have seen significant price recovery and should alleviate the margin concerns seen in September.

The market is awaiting tonight’s meeting of Euro finance ministers for signs of positive economic stimulus as well as decisions around Greece’s next trance of bail out monies and talk about whether or not Spain needs a bailout. The headlines will drive the market over the next 24 hours and help determine if the recent risk-on sentiment continues.

Alcoa’s upcoming result will also be watched to give an indication for the US earnings season. Whilst Alcoa’s result was once considered a crystal ball for the US general economy many traders now prefer to wait until US banks start reporting at the end of the week for a better indication.

www.cmcmarkets.com

ENDS

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