Forex.com’s Kathleen Brooks reports momentum traders are turning to equities with other markets playing second fiddle now, at best.
Given the state of the Australian economy, economists from at least two houses are forecasting a further three RBA rate cuts to 2.00% by the first quarter next year.
Fixed-income investors that have targets based on imperfect risk measures are tempted to take on additional risk to raise their yields.
The Dow closed above 15,000 for the first time ever last night on an 87 point gain, while the RBA rate cut was the talk of the town. (Accessible only for subscribers before 10:15 AEST)
If anything, it is the strong Aussie which prompted a mostly unexpected cut in the RBA cash rate to 2.75%.
The RBA today cut its cash rate by 25bps to 2.75%.
The S&P ticked up slightly into blue sky last night in a quiet post-jobs session with UK metal markets closed. Dow down 5. (Accessible only for subscribers before 10:15 AEST)
Wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.
A brief look at important company events and economic data releases next week.
With plenty of central bank backing you might as well Buy in May. Dow up 130. (Accessible only for subscribers before 10:15 AEST)