Retail Boys Up: A signal of better times?
May 10th 2007 13:50
As soon as the takeover frenzy retreated, came in the big retail boys that pushed the market to new records today. It was obvious that the market reaction to the rumours of BHP bidding for rival Rio contained no material basis but today's shift to the retailers raise some eyebrows.
The benchmark ASX S&P 200 index closed 14.5 points higher to 6355.5 points.
There seems to be a consensus in moving the money to where the wallet is, as if it was a vote of confidence to consumer spending for the coming months and the prospect of another interest rate rise is kind of muted.
That is what some analysts say about the interest rate but there are still some disagreements between economists of the big banks. Nonetheless, the so-called balanced budget by Peter Costello and the restrain in hiking the rates by the Feds seem to favour the feel good side of the story.
But as always; expect the unexpected.
The benchmark ASX S&P 200 index closed 14.5 points higher to 6355.5 points.
There seems to be a consensus in moving the money to where the wallet is, as if it was a vote of confidence to consumer spending for the coming months and the prospect of another interest rate rise is kind of muted.
That is what some analysts say about the interest rate but there are still some disagreements between economists of the big banks. Nonetheless, the so-called balanced budget by Peter Costello and the restrain in hiking the rates by the Feds seem to favour the feel good side of the story.
But as always; expect the unexpected.
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