Local Investors Jump On the Bandwagon

Market Commentary CMC Markets

Local Investors Jump On the Bandwagon

By Niall King (Sales Trader, CMC Markets)

The Australian Market has found its stride again this morning, starting the week with early gains as global growth concerns ease slightly.

Following a string of uninspiring economic data, Friday’s bumper payroll figure from the US has been welcomed with open arms by financial markets. Coupled with central bank commitment to stimulus measures, a more solid employment scene in the world’s largest economy gave the bulls room to manoeuvre and allowed international equity markets to soar.

Local investors have been happy to jump on the bandwagon in the early part of the session. Fuelled by Friday's commodity surge, it’s little surprise that the Materials sector has led the market higher today while all of the big four banks are in positive territory.

Having gained ground on the back of Friday's equity and commodity rally, the Aussie dollar has been hovering nervously under $1.03 in early trade.

While the RBA ponders if recent data has been soft enough to warrant a rate cut, the latest Retail Sales figures should provide more food for thought. Short-term direction for the Aussie is likely to be dictated by this morning's Retail data while the local equity market reaction to Friday's non-farm payroll reading should have an impact on the unit.

Looking ahead, all eyes are quite naturally fixed on tomorrow's local rate decision. However, the local markets' attention will quickly shift to its biggest export market with a host of economic health checks expected from China later in the week. The domestic unemployment situation will also come under review on Thursday.

ENDS

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