To start the new year on a positive note, let's analyse the current state of the market and identify key factors to keep an eye on.
XJO: All Ords
YTD the XJO is up 560 points or 8% (time of writing).
The XJO has broken away from its previous downward trend due to positive news from the US about the Consumer Price Index (CPI), which met expectations. Although the Australian CPI data has increased, we are still following the lead from the US in our equity market. Despite the downside from overseas, our index has remained strong, largely due to a boost in commodity prices.
As reporting season approaches for major US institutions, the data released in early February will significantly impact the market's performance in the first quarter. With brokers and dealers back at work and fully invested, there may be instances of panic selling if the results do not meet expectations. Conversely, if the numbers are good, there may be a rapid buying back of short positions, leading to a rise in the market.
This week, all attention will be focused on the banks and the Federal Reserve. The ASX offers ETFs that track indexes, allowing investors to benefit from both rising and falling markets.
To summarise, the XJO has overcome downward trends and remains strong. Market performance in Q1 will be determined by reporting season and US institution data. Banks and the Federal Reserve are key factors to watch.
Where to from here?
Trading equities is all about having access to the right investment opportunities and making decisions based on accurate, unbiased information. Often, this means hours of research on a daily basis, keeping up with several ASX announcements, understanding economy-impacting events and regularly consuming broader news updates. If you're not an equities trader by profession, then it can quickly become rather overwhelming, especially once you have built a considerable-sized investment portfolio.
Our Equities Trading team, backed by our independent research department is the ideal solution for said situation. Our clients receive access to exclusive investment opportunities, daily ASX research reports, our expert weekly outlook on the Australian markets and direct access to our equity traders.
Trading with Barclay Pearce Capital is about building long-term returns, trust, confidence and a mutually beneficial relationship.
Trading with Barclay Pearce Capital ensures the needs of investors of all magnitudes are met by our highly skilled and attentive trading professionals.
~ Trent Primmer, Director of Trading, Barclay Pearce Capital.
