US markets were uneventful overnight, Bonds yields edged higher, Oil gave a little back, and metals closed slightly higher. It seems the market has found its next key reflection point and is waiting for the next catalyst to drive it higher or lower.
Markets rose strongly over the last week, so there is no real surprised to see a period of consolidation of a small pullback. The overall trend is up so we expect the much more upward movement to come, but we may need more concrete news on US fiscal stimulus first.
Reporting continues to beat expectations in the US, locally we are seeing a much more mixed reporting season. NCM and IAG both beat expectations and have strongly jumped this week. CBA was a good result, but it’s share price had already priced it in.
Vaccines are going to arrive locally in the next week, as well as manufacturing kicking off. We should see more and more positive Vaccine news to come locally. In Victoria we saw another 5 cases overnight, Some news outlets are talking about a potential 2-week lockdown.
The XJO is expected to open fairly flat following similar leads from the U.S last night. U.S futures also sit flat this morning, so we don’t have any leads to tip us one way or the other during our session today, yet. If this changes, if the U.S futures pushes into the green or red during our session today, expect our market to follow.
Regardless, it seems we don’t want to break support as our market takes the stairs on the way up, using previous post-fall highs as key a platform to stand on. This could all change if we see a strong sell off in the U.S, in which case the next key level would be 6750, but at this stage this seems unlikely. Sentiment remains positive overseas and locally with reporting going well so far.
US shares again closed flat overnight, with modest gains and losses across their various indices. The flat session came with economic data that showed worse than expected jobless claims numbers in the US, as the number of unemployed claiming state benefits in the US continues to rise.
US markets have stalled at fresh all-time highs and are waiting for a signal to send them in either direction; the next directional move could be triggered by the Democrat’s $1.9 trn stimulus plan, which they are hoping to have passed by the end of March. Tech stocks were the strongest performers overnight, while oil & gas stocks pulled back after a fortnight of strong gains, other sectors were fairly flat.