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The very many risks whirling about markets are highly applicable to Australian equities, said Kyle Rodda at IG Markets.
Even though the ASX200 missed out on the parabolic rise experienced by US indices during the cheap-money, bull-market era, the concerns hindering sentiment directly relate to the fortunes of the ASX.
It’s because of the composition of our market that this is so: it’s overly weighted financials and materials stocks. The crux of the global equity selloff is twofold and applies equally to the local share market.
On the one side, traders are collectively communicating (rightly or wrongly) that global growth is going to slow down considerably; on the other side, policy makers (that is: the US Federal Reserve) have signalled they will continue tightening global financial conditions.
Read the full 8@eight here.
from news Viral City http://bit.ly/2GwMgeL
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