Market Report with Paul Wareing - December 65, 2016

Written on the 6 December 2016

Market Report with Paul Wareing - December 65, 2016 In Australia last week the third quarter capital spending report was weak which suggests the same will follow for business investment to be reported in this weeks GDP report. The most disappointing aspect of this was the lack of increase in non-mining investment which doesn't bode well for any rate rises in the near future. On a more positive note October retail sales were stronger than expected.

Oil prices surged 12% on the back of  surprisingly strong commitment from OPEC to cut production. In the US , the non-farm payrolls were pretty much on the mark further solidifying the likelihood of a Fed rate rise this month. As suggested last week, the Trump trades started attracting some profit taking.

Looking ahead , the heavy referendum poll defeat for constitutional change in Italy and the PM'S subsequent resignation will have investors eyes watching closely how this will play out.  Eurozone stability will once more be front and centre as this result will boost the anti-EU populist parties as they prepare for elections in 2017.

Locally it's a pretty quiet weak data wise with GDP the main focus and the RBA meeting on Tuesday but with little chance of a rate rise expect a fairly nondescript statement. GDP numbers could be interesting as some market commentators are looking at a negative number. I imagine we will see sluggish growth with first half figures flattering to deceive as they incorporate some lumpy public spending and an unexpected commodity price rally.

In summary, a lot of focus on Europe and how weak the Euro gets and a close analysis of Australian GDP figures will be the main market drivers.

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.

Upcoming Events

Latest news

Matso's Acquired by Gage Roads Brewing

The Peirson-Jones family are delighted to announce that we have agreed to sell Matso's Broome Brewery (Matso's) to Gage Roads Brewing Co (ASX:GRB), one of Australia's leading independent craft brewers. The agreement will see the Matso's range become an integral part of Gage Roads' portfolio of well-known craft beers an...

Read More

Articles via RSS rss

Sign Up for the latest news & events

Does your business attract, recruit and retain staff by offering employment or work experience to young Aboriginal employees?
CLICK HERE to become a Working Together Employer of Choice.



We are located at:

6 Napier Tce
(behind the Westpac bank)
WA 6725

Chamber office hours

Monday: 10am - 3pm
Tuesday: 10am - 2pm
Wednesday: 10am - 3pm
Thursday: 10am - 2pm
Friday: 10am - 2pm

Please ring for an appointment


(08) 9193 5553

After Hours

0410 967 509