Equity markets may well have seen their lows for the year, and this is no time to hesitate according to Clifford Bennett of Herston Economics. With ASXSP200 5,000 likely to be seen very quickly, and a year-end forecast of 5,600, the risk reward opportunity is outstanding.
It is all about the Queensland floods today, and the impact will be far reaching. Investors will be understandably distracted and liquidity could become an issue, even for the Australian dollar. Should the currency start to move to quickly, Clifford Bennett expects the Reserve Bank of Australia would have to intervene to support it. Meanwhile overseas developments have been positive with both Italy and Greece easily raising funds overnight. This fears about Europe have been exaggerated, and the outlook for equity and commodity markets is quite positive. The local share market looks set for steady gains from current levels, while the Australian dollar will remain under pressure for a couple of days.
Oil and the Australian dollar are the favoured markets to watch, while Sterling and Gold are building as well. The European sovereign debt crisis is on its last legs according to Bennett, who expects more positive than negative surprises out of Europe as Greece proves it can achieve and exceed the austerity targets it has agreed with other European nations.
Clifford Bennett provides a report on unemployment numbers and the impact on the outlook of the US economy, with the impact of the economy based on the majority of the population employed resonating a positive outlook. The Australian market looking up, particularly gold and oil, Clifford recommending to watch the Oil stocks closely over the next 72hrs for significant gains. Summarizing Clifford speaks about the local and international markets, briefly touching on the ASX, US, Euro and Portugal, as well as rumours over the media articles published over the weekend suggesting France and Germany wanting to pressure Portugal to request a rescue package from Europe, in which Berlin has refuted.
Clifford Bennett from Herston Economics Provides the Australian, Asian and Global Market Overview for January 7, 2011. Mr Bennett is a leading economy forecaster and Chief Economist at Herston Economics
Chief Economist, Clifford Bennett, is widely recognized for his often market leading and insightful economic and financial market forecasts. Clifford has 25 years international experience with some of the world's leading investment banks, and was named the "world's most accurate currency forecaster" by Bloomberg News NY. Clifford is the author of "Warrior Trading" published by John Wiley & Sons New York, and frequently appears in the financial print and television media.
Palisade Corporation is the maker of the market leading risk and decision analysis software @RISK and the DecisionTools(R) Suite. Virtually all Palisade software adds in to Microsoft Excel, ensuring flexibility, ease-of-use, and broad appeal across a wide range of industry sectors.
