Market Report with Paul Wareing - November 22, 2016
Written on the 21 November 2016
Last week was relatively quiet as the" Donald " effect gradually calmed down. Focus will now be on the appointments he makes and also a more rational analysis of what he will actually be able to get through congress .
Investment wise in the US the main beneficiaries are still health care, financials and defence with a move away from the defensive yield plays such as real estate as bond yields continue to firm. This was further helped by US Fed chairwoman Janet Yellen hinting at a rate rise in December. OPEC are still talking production controls which helped the oil price. Gold was hampered by a strengthening US Dollar.
Interestingly the Australian market was somewhat contrarian in that investors moved into the defensive yield plays such as listed property given historically low deposit rates and little sign of a rate rise on the horizon.
There was a slight pull back in iron ore prices due to a softening in Chinese demand but nothing of any real concern. The Aussie dollar was weaker against the greenback as the prospect of higher interest rates attracted investors.
There's not a lot of data out this week so we'll probably see a quiet market with probably a bit of profit taking on the Donald trades.
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