Market Report with Paul Wareing - Feb 9, 2017

Written on the 9 February 2017

Last week in Australia economic data was pretty positive with good credit growth and an increase in business confidence (NAB Survey).

Perhaps most significant was the record monthly trade surplus for December reflecting higher coal and iron ore prices, which also nudges the AUD higher.  Building approvals feel which may suggest the home building boom is waning if not yet over.

Across the water , President Trump's travel bans initially spooked the market but some good jobs data secured a positive end to the week. Bank stocks in particular benefited as the process for winding back some financial regulations got under way. The positive data coming from the US is nudging global markets higher and the weaker USD is aiding gold prices and the stocks. Oil prices were higher as it appears OPEC is sticking to its' production cuts and the US imposed new sanctions on Iran.

Looking forward the US is light on data this week so all eyes will be back on The Donald and his tweets!!  I'm sure banks will continue to benefit from the deregulation process but elsewhere the scatter gun geo-political and international trade statements from the White House may act as a bit of a hand brake.

Locally, the RBA left interest rates on hold yesterday (expected) and popular opinion would err to the next move being downwards. The statement was cautious as is usual, and pretty much steady as she goes. So unless there are any overly aggressive tweets or policy statements from the Donald I can see the markets grinding out a positive week but not shooting the lights out.

 

Paul Wareing
Investment Adviser
Barclay Wells Ltd
41 Carnarvon St Broome
0411 809 104
paul@barclaywells.com

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