Good Morning,
“A pinch and a punch”, yes it’s the 1st of the month and winter is here….
An eventful trading session we had in China yesterday, with the index plunging 10% in a matter of seconds, then rebounding back up…
We did talk about short positions in the Chinese market being the highest for the past 12 months, but we certainly didn’t expect a “10% flash crash”……
Warning signs for June?
Yes, likely, as the USD continues to rise, central bank policies aren’t as effective in stimulating growth and the AUS election looms….
http://www.smh.com.au/business/markets/june-looms-as-month-of-selling-after-two-months-of-asx-gains-20160530-gp7qcc.html
Last night in the US, stocks fell (Dow Jones -87 points), as a higher USD hurt commodities……
“Markets are getting used to the notion that it would be appropriate that there’s a Fed hike in June,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co., which oversees $8.5 billion in Bryn Mawr, Pennsylvania. “You’re seeing a drift downwards on light volume. Economic data is good, oil is trading in the tight range -- nothing dramatic there.”
In Oz, we had a lot of activity, some good (VAH) and some poor (Flexigroup missed forecasts) and we expect some volatility to exacerbate this month, leading into the federal election….
The SPI is down 22 points this morning.
