Australia | Mar 05 2013
Download related file: afternoon_report_2013-03-05
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Central banks continued to drive markets today after Federal Reserve (Fed) Vice Chairman Janet Yellen said overnight that she does not see any risks that advocate a “curtailment” of the Fed’s US$85 billion in monthly asset purchases. The Nikkei-225 added 0.4% to reach the highest level since Sept 2008 as Kikuo Iwata, a nominee for deputy governor of the Bank of Japan, said the central bank must expand the nation’s monetary base to boost economic growth.
Meanwhile, more locally, the Reserve Bank of Australia (RBA) kept its benchmark cash rate target unchanged at a half-century low of 3.00%. Governor Glen Stevens said that there was “significant easing” in 2012, that “the full impact” still has to take effect, and that there signs that the easier conditions are working. Stevens said the inflation outlook affords “scope to ease policy further”. Futures are currently pricing in a 50-50 probability split that the RBA will cut or hold rates next month.
To read today's report in PDF in full, see link at the top of this story.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
Analyst Certification: Any views expressed in this research report by Seismic Research Solutions Pty Ltd (‘Seismic Research’) accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst principally responsible for the preparation of this research report receives compensation based on overall revenues of Seismic Research and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.
Disclaimer: This document is intended solely for informational purposes and solely for the particular person to whom it was provided by Seismic Research Solutions Pty Ltd (‘Seismic Research’, ABN: 96 143 340 194). This document should not be relied upon by any other person. All statements contained herein are subject to change without notice. This document is not an offer to buy or sell any financial instruments. This document contains general advice only. In preparing this document, Seismic Research has not taken into account any recipient’s investment objectives, financial situation or particular needs of the reader. Seismic Research is not acting as advisor or fiduciary in providing this document, the reader should not make an investment decision on the basis of this document. Although we believe that the information this document contains is accurate and reliable, Seismic Research has not independently verified the information contained in this document, which is derived from publicly available sources. Seismic Research is an Authorised Representative of an Australian Financial Services Licence holder (AFSL: 338 943). Authorised Representative number: 389 109.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.