China Stumbles While Bulls Still Rumble

China Stumbles While Bulls Still Rumble

By Niall King (Premium Client Manager, CMC Markets)

Following a tepid start to the week ahead of the Federal Budget, the local sharemarket has edged higher in the early part of the session today.

After another positive lead overnight from the US, it's been a tale of two sectors with the Financials coming out ahead so far as CBA delivered further profits.

Broadly speaking, the bulls remain dominant in an equity market environment of easy money, corporate profits and brighter economic data from the US.

However, an overnight dip in commodity prices on the back of Chinese growth fears has immediately been felt by the local market, with the Materials sector down sharply this morning.

Last night’s Budget landed another heavy blow to the ailing Aussie dollar, as expectations mount that further easing measures will be required to supplement growth. Having been on the receiving end of an abrupt reality check in recent days, the Aussie has dragged itself off the canvass this morning to hold just over 99 US cents having slumped well into 98 territory overnight.

ENDS

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