Market Report with Paul Wareing - March 02, 2017
Written on the 28 February 2017There was a small pull back for the ASX200 Index last week as a few big index contributors went ex-dividend and business investment and construction data was a tad disappointing. Earnings reports were a bit of a mixed bag and in commodities iron ore motored north but oil was a little subdued despite the production cuts. This could well be down to ample US inventories and an increase in US production.
Heading overseas, the Dow Jones ground out a modest increase and the US Dollar was fairly flat. There seems to be some niggling doubts coming into the market about the size and timing of the President's fiscal stimulus package. All will hopefully be revealed when he addresses a joint sitting of the US Congress on Wednesday morning our time.
This speech will undoubtedly be the focus of the week as markets try and gauge exactly what the President is proposing. A well accepted positive stimulus may well lead to some buying, but there is also the possibility that investors have pretty much factored that in ( hence the recent run of record highs) so if, for example, the timeline for the investment pushes out to later in the year or even 2018 we may see a slight correction. Certainly, any disappointment will see a pull back.
Locally, despite positive noises from the RBA, a good NAB business survey and steady unemployment data business and consumer spending remains soft. It would appear those at the coal face don't share the optimism of the commentators. So a mixed week ahead, and once more we look to the Donald!!
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