Heading into the end of the year, a Xmas period rally in shares could be possible. While we would not want to attempt to read Trump’s mind, we note it is worth keeping in mind President Trump is looking to win an election next year.
Closer to home, a surprise increase in the unemployment rate supported gains on the Australian market yesterday - with the market tipping another interest rate cut by the Reserve Bank of Australia was likely in the next six months.
NZ shares fell after the Reserve Bank surprised investors by keeping the official cash rate at 1.0%, with dividend paying "bond proxy" stocks taking a hit.
Global markets continued to trend higher overnight with the technology sector leading gains.
Global markets were little changed overnight, although emerging market shares fell the most in more than two months as stocks tumbled in Hong Kong amid violent clashes after a protester was shot by police.
To date, 89% of the companies in the S&P 500 have reported 3rd quarter results and in terms of earnings, the percentage of companies reporting above estimates (75%) is above the five-year average.
It was a busy day yesterday for stocks under our coverage yesterday, with announcements from Xero, Spark, and James Hardie.
Shares in Pushpay jumped yesterday after announcing what we saw as a solid first half of 2020 result.
Closer to home, yesterday the Reserve Bank of Australia left the official cash rate unchanged at 0.75%.
While trade news-flow and global economic data trends will remain in focus for investors, markets are entering a traditionally buoyant period on a sound footing.
