The Only Way Is Up
CMC Markets | Sep 28, 2017 10:11
Originally published by CMC Markets
Risk is back in favour judging by overnight market action. The US S&P 500 Index hit another all-time high. European bourses rallied, copper and oil added to recent gains and the US dollar gained ground against other major currencies. Defensive investments such as gold and bonds slumped further. The positive moves point to gains across the Asia Pacific region today.
Strength in US durable goods orders in August underpinned a key market thematic. In a statement that confirmed the RBNZ’s maintenance of current interest rates it said this morning “global economic growth has continued to improve in recent quarters”. Recent data around the globe confirms this view and investors are responding to the empirical evidence. Despite concerns about a seasonal downturn for shares at the moment it appears the only way is up.
This is a crucial for investors in Australia. While the Hang Seng, the Shanghai Composite and the Nikkei 225 sit close to multi-year highs the S&P/ASX 200 index is sitting on the bottom of its recent trading range. A bounce off yesterday’s close could quickly restore confidence. Conversely any souring of sentiment that saw local shares finish down a half percent or more today would provide a technical signal that may result in a sharp tumble over the coming days and weeks.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.