Australia 200 Index flat as investors eye the turkey

11:55 AEDT, Wednesday, 24 December 2014

Australia 200 Index flat as investors eye the turkey
By Will Leys (Sales Trader, CMC Markets)

The ASX200 is a fraction softer in morning trade, in spite of the strong international leads.

US markets rallied to records overnight on the back of a bumper final GDP read, telling of an economy on the up. New Home Sales figures and monthly Core Durable Goods Orders fell short of expectations, but it didn’t matter, as investors focused on the bigger picture.

European bourses also experienced gains, but these were muted by the cloud of uncertainty surrounding Greece. Election results appear to have reopened the door for the opposition party, Syriza, which may in turn threaten Greece’s place in the EU. It’s still early days, but the concern is real.

Locally, action is subdued, as investors seem to have one eye on the turkey. It’s fairly flat across the board so far. Materials and Industrials are slightly outperforming, whilst on the flip side the Telcos are under a little pressure.

Meanwhile, the AUD is floundering around 81 US cents. The local unit suffered again overnight, as the US GDP read bolstered the case for the Fed to commence raising rates.

ENDS

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