Market Report with Paul Wareing - December 13, 2016

Written on the 13 December 2016

Market Report with Paul Wareing - December 13, 2016 Onwards and upwards seems to be the way of it at the moment, with stocks , bond yields and the US dollar all heading north. Gold was negatively impacted by that dollar strength and oil maintained its strength on the back of OPEC related confidence.

At home, the Q3 GDP surprised to the downside , indicating that the economy contracted by 0.5% last quarter. This inevitably led to chatter about possible rate cuts but the market isn't convinced and held its view that rates would remain static throughout 2017.

Looking forward, the FOMC meeting in the US is finally upon us with markets factoring in a 100% certainty of a US rate rise. This will be initially supportive of the US dollar but given the next expected rise is not until June 2017 we may see a pull back early in the year.

Locally, the unemployment numbers are due on Thursday and will be the main focus of attention. Employment growth has eased of late with increases focused on part time jobs as oppose to full time. A figure of 17,000 is expected.

Looking forward , it's hard to look beyond the "Trump " trade as he revels in a sustained honeymoon period. Record highs keep getting hit and it looks close to getting over valued but for now it's best not to stand in the way of a speeding train. A US rate rise will see further strength in bond yields which will potentially see a rotation away from the defensive bond yield proxies such as real estate trusts and into more risk based financials such as the banks.

We shall see.

Paul Wareing
Investment Adviser
Barclay Wells Ltd
41 Carnarvon St Broome
0411 809 104


In accordance with Section 949A of the Corporations Act 2001 Barclay Wells Limited advise that information in this article contain general financial advice only. Wells Limited did not take into account the investment objectives, financial situation and particular needs ('financial circumstances') of any particular person. Accordingly, before acting on any advice contained in this site, you should assess whether the advice is appropriate in light of your own financial circumstances or contact your Barclay Wells Limited adviser. Barclay Wells Limited, its Directors employees and advisers may earn brokerage or commission from any transactions undertaken on your behalf as a result of acting upon this information. Barclay Wells Limited, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly, from client transactions. Barclay Wells Limited believe that the advice herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is accepted by Barclay Wells Limited or any officer, agent or employee of Barclay Wells Limited.

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