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Local market follows US higher
Local market follows US higher
By William Leys
(Premium Client Manager, CMC Markets)
20 May 2013
The Australian market has made a strong start to the week, following another record breaking session in the US and signs of improving domestic consumer confidence.
The University of Michigan index of consumer sentiment reading exceeded expectations on Friday, and provided the catalyst for another US charge. Both the Dow and S&P 500 ended at record highs.
This renewed optimism over the world's biggest economy has inspired the local market, and this morning's Commonwealth Bank's BSI reading has added to the cheer. The survey showed increased spending throughout the economy for the eighth consecutive month, which bodes well for domestic businesses. Gains are broad based so far.
Investors will look to Tuesday's release of the RBA's last board meeting minutes for the next major cue. The minutes may provide some indication as to whether the current easing cycle has bottomed, or if further cuts may be on the cards. Naturally, this will have implications for both local equities, particularly the yield stocks, and the struggling AUD.
www.cmcmarkets.com
ENDS
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