G'day gero.
Your abscence from chat is noticable. I hope your building project is going well.
Like you I think we will see another correction. But it may be delayed while the market bounces through the reporting season.
Once that is out of the way, it will be back to the reality of sovereign debt problems overhanging the market.
First in a thread that looks at indices related to aussie market. Now compare this to other global indices and Im seeing the same patterns except for japan. The intersection wil come in beginning november approx in time for mid-term US Elections. However it will be thru the sept/oct period normally reserved for the bearish to take advantage based on all the good news has come out in profit reporting so lets percieve its NOT going to get better.
That looks like a head & shoulders pattern on the end there.....I notice WBC has the same pattern as does the DJIA.
Cheers
MB
That looks like a head & shoulders pattern on the end there.....I notice WBC has the same pattern as does the DJIA.
Cheers
MB
http://noir.bloomberg.com/markets/stocks/futures.html
Australia Minority Government a Risk to Equities, Says JPMorgan
By Shani Raja
Sept. 8 (Bloomberg) -- The election of a minority government in Australia carries risks for investors in the nation’s share market, according to JPMorgan Chase & Co.
The biggest risk will be pressure on the central bank to raise interest rates if the government increases spending to accommodate a disparate group of lawmakers that helped it win power, JPMorgan said in research note. An inherently unstable administration might also increase spending to boost its popularity ahead of a possible fresh election.
“The administration will essentially be in constant election mode, which is not a recipe for tight fiscal discipline,” strategists led by Paul Brunker said in the note, dated yesterday. “Higher government spending adds to the potential for interest rates to go into more dangerous territory for consumers and housing demand.”
Prime Minister Julia Gillard’s Labor Party was forced to negotiate a power-sharing agreement with the Greens Party and three independents after losing its majority in an Aug. 21 election. Independents representing electorates outside major cities agreed yesterday to back Gillard in return for A$9.9 billion ($9.1 billion) of investment in rural areas to improve health care and education.
Reserve Bank of Australia Governor Glenn Stevens kept the benchmark overnight cash rate target at 4.5 percent yesterday for a fourth month.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net
Last Updated: September 7, 2010 20:33 EDT
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