Reality check for reflation trade as gloss wears off Trump
Cyclicals were heralded as the stocks to hold in 2017, but despite a disappointing underperformance in the first quarter it's too early to write them off.
Jens is the markets and breaking news editor, based in Sydney.
Cyclicals were heralded as the stocks to hold in 2017, but despite a disappointing underperformance in the first quarter it's too early to write them off.
A record number of global fund managers reckon that stocks are overvalued, according to Bank of America Merrill Lynch's monthly survey.
The commodities mini-boom moves beyond share prices and macro data and is starting to be felt at ground level, NAB says.
Shares dip led down by Harvey Norman's biggest slide in more than five years, while the Aussie dollar nudges higher.
The sharemarket nudged close to 2017 highs in a week marked by a rebound in mining stocks and an equities-friendly Fed decision.
Central bank policy dominated sharemarket trade: while a Fed hike was initially greeted with strong gains, a surprise follow-up move by China dampened the mood.
Markets are tipping a one-in-three chance the RBA will start lifting rates this year, while Goldman Sachs says a move in 2017 is now more likely than not.
Market exuberance is still driven more by monetary stimulus than fundamentals, and now may be a good time to reduce risk positions, Citi warns.
Neither soaring house prices nor a more hawkish US central bank will sway the RBA when it meets on Tuesday, but a rate hike may loom later in the year.
The stars are aligning for the economy: business conditions and confidence have unexpectedly jumped, with employment conditions particularly encouraging.
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