Originally published by Rivkin Securities
Aussie equity bulls are expected to jump out the gate with positive sentiment following last week’s rally on wall street. SPI futures are up 69 points to 5,631 as of 9am AEDT Saturday. The Wall street surge follows a positive US jobs report and exceptionally dovish comments from Fed chairman Jerome Powell.
The US indices surged well over 3% with the tech heavy Nasdaq up over 4% in the trading day, this follows a strong bounce in Apple (NASDAQ:AAPL) shares which managed to jump well over 4% however, are still down 20% from their all-time highs. Netflix (NASDAQ:NFLX) jumped 9.7 per cent following a report from Goldman Sachs (NYSE:GS) adding them to their “conviction list”.
The energy sector held strong as crude oil continue to rise following it’s December lows. The markets are still plagued by strong volatility as investor sentiment still seems to be doubtful of the global economic outlook. However, investors have the right to be cautious and not jump directly back into things especially with the threat of a yearlong shut-down from President Trump if he doesn’t get the money for his US-Mexico border wall.
The ASX 200 index closed the week 31.3 points, or 0.6 per cent lower during the first trading week of the year – this poses the question for investors if now is the time to pick up some bargain stocks.
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