Switzer on Saturday

Best weekly levels for Oz stocks in 10 years!

Founder and Publisher of the Switzer Super Report
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Friday Close
Change
Change %
Week Change %
Dow Jones
24,580.89
119.19
0.49%
-2.03%
S&P 500
2,754.88
5.12
0.19%
-0.89%
NASDAQ
7,692.82
-20.14
-0.26%
-0.69%
ASX 200
6,225.20
-6.90
-0.11%
2.15%
Data for week commencing 18 June 2018

Fears about Trump’s tariff talk, trade war tension and Telstra were big negatives for the stock market this week but our S&P/ASX 200 index defied the Dow’s eight-day losing streak to push into 10-year highs! Why? Here’s a list of reasons I put forward on Thursday in my Switzer Daily column:

  • The lower dollar that has come with US interest rates rising and the greenback moving higher. A lower dollar is good for our economic growth.
  • Morgan Stanley thinks foreign investors are “parking their money” here, with the Euro threatened by trade war talk.
  • Some Chinese demand for expensive US goods could be diverted to Australia in a trade war, which could be good for education sellers and even beds from the A. H. Beard company, which already sell its products in China.
  • China could also boost its demand for Aussie LNG, if the USA is to be punished for Trump’s tariffs.
  • Also, if China’s economy is threatened by a US trade wall, it might stimulate its economy, which would pump up demand for the likes of our coal, iron ore and other mining products. And I guess Chinese tourists could be told to give the USA the flick, which would help us.

But the big one was the re-loving of our bank stocks, which started Thursday week ago, when CBA hit its recent low of $67.22. It finished on Friday at $73.86, which is a 9.8% turnaround!

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