Attention shift?
August 27th 2007 08:43
Following the positive leads from US market performance last week, boosted by stronger than expected economic data, the Australian market closed the first day of the last trading week of August, 2007 by a gain of 1.6%, as displayed by the ASX S&P 200 benchmark index. The index added 96.7 points to 6,185.2 points.
The overseas leads combined with strong local earnings pushed the market higher.
Having mentioned several times, that until the full extent of the damage caused by the credit slump in the US is known, the markets will continue to perform nervously due to the lack of strong information regarding the mess to be priced. However, given that its not possible to know the complete situation now, investors came out from their bunker with great caution in search for some positive information and earnings. And thus the positive performance of the markets recently, moving the attention away from the subprime mortage issue for the time being.
The show has to go on.
As reported by The AGE today:
'Still, they cautioned that persistent worries about credit markets will continue to keep investors wary.
"The subprime debt issue will take a while to work through the system and there could some reasonably large losses but it appears that the market is prepared for that,'' said Paul Xiradis, chief executive officer of boutique fund Ausbil Dexia.'
All is not lost as long as it is 'quality' play.
The overseas leads combined with strong local earnings pushed the market higher.
Having mentioned several times, that until the full extent of the damage caused by the credit slump in the US is known, the markets will continue to perform nervously due to the lack of strong information regarding the mess to be priced. However, given that its not possible to know the complete situation now, investors came out from their bunker with great caution in search for some positive information and earnings. And thus the positive performance of the markets recently, moving the attention away from the subprime mortage issue for the time being.
The show has to go on.
As reported by The AGE today:
'Still, they cautioned that persistent worries about credit markets will continue to keep investors wary.
"The subprime debt issue will take a while to work through the system and there could some reasonably large losses but it appears that the market is prepared for that,'' said Paul Xiradis, chief executive officer of boutique fund Ausbil Dexia.'
All is not lost as long as it is 'quality' play.
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