Caution Continues

Caution Continues

CMC Markets  | Feb 13, 2018 13:13

Originally published by CMC Markets

The stock market has recovered this morning but is yet to exhibit signs of bargain hunting exuberance

The S&P/ASX 200 is up 0.4% half way through the trading day, underperforming the US S&P 500 which rose 1.4% last night. This partly reflects the fact that the local market has not fallen as far. The S&P 500 is currently 7.5% below this year’s peak while the ASX 200 is down a more a more subdued 4.6%

However, this morning’s muted rally is likely to reflect caution ahead of this week’s US inflation data. Higher than expected inflation could send bond yields higher and provide equity markets with another scare. However, a lower than expected CPI read is likely to leave markets uncertain for some time, even if there is a positive knee jerk response. More data will be required to conclude that US wage growth remains subdued or that wage growth is not pushing inflation materially higher.

CMC Markets

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes