Press Release – CMC Markets
Financial markets may have enjoyed a dream run so far this year, however buying enthusiasm may soon be in need of a top up.
15.17 AEDT, Wednesday 13 March 2013
Buying enthusiasm in need of a top up
By Tim Waterer (Senior Trader, CMC Markets)
Financial markets may have enjoyed a dream run so far this year, however buying enthusiasm may soon be in need of a ‘top up’.
Markets across Asia succumbed to selling pressures today with more than a few traders happy to take some profit at these elevated levels. The soft Chinese data released last weekend also appears to be having a lingering effect by tempering the performance of Asian markets this week. Traders likely want to see more consistent numbers from the world’s second largest economy if the recent market rally is to extend.
A neutral start to the day quickly turned negative on the ASX200 with financial sector weakness more than overshadowing a decent day from the mining stocks. The Dow may have hit a fresh high again overnight. However, in general the lead from offshore was not overly convincing, which left the door open for profit taking to set in today on the Australian market. Traders will also be mindful of the next round of Australian employment data due on Thursday with the result potentially having interest rate implications.
It will not just be stocks that may react to the employment numbers, with the AUD also likely to be subdued ahead of the data. The AUD enjoyed a strong run overnight thanks to the US Dollar easing and a push higher in commodity prices. The currency received an early boost today via the solid consumer sentiment reading, which pushed the currency to its daily highs before easing in line with Asian equities during the afternoon session.