Where are we heading?
August 15th 2006 12:07
The war in the Mid East is finally over but the terrorism fear is heightened. A new beginning to an end. Will this happen here in the context of the market? Are we seeing an end of a beginning? Well the ASX S&P 200 benchmark index today shed 0.7%. Same goes for the All Ords. The outlook for the local market is getting hazier by the day as there are a couple of major concerns that the market has factored in . One being another round of rates hike by the RBA before Christmas with almost over 90% of the economists believing that the Reserved board stamping the approval in the year end. The economy is doing fine with unemployment rate at records low but whether the hike would be fueled further, look no further than tomorrow for the release of the wage rate data. A companion increase in wage rate with the employment records, please hold tight, as this would certainly push the rate up just in time for Christmas.
Fingers crossed
Overall, the market performed well in contrast with the UK and US markets. Many thanks to the strong economy and Chinese demand for resources. For the past two years the ASX 200 never fail to impress with a gradual build up to the sky. Even better when compared to Nasdaq, although the positive correlation is clearly visible, the gap certainly put the Aussie stocks doing the ka-ching.
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However, reality strikes. Looking at the recent six months peformance of the ASX 200, the index movements is becoming increasingly volatile, presenting a clear notion that the market is confused of its outlook.
Fingers crossed
Overall, the market performed well in contrast with the UK and US markets. Many thanks to the strong economy and Chinese demand for resources. For the past two years the ASX 200 never fail to impress with a gradual build up to the sky. Even better when compared to Nasdaq, although the positive correlation is clearly visible, the gap certainly put the Aussie stocks doing the ka-ching.
ASX 200 index 2 years performance
ASX 200 v Nasdaq
However, reality strikes. Looking at the recent six months peformance of the ASX 200, the index movements is becoming increasingly volatile, presenting a clear notion that the market is confused of its outlook.
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