A new bullish market in front of us, for equites and commodities
From YouTube
The final quarter of the year traditionally the best the stocks. October is also a good month for stocks too, that have risen 1.6% on average (for the S&P500). But we thought September could be the weakest month for stocks, because that's what history says. But it was not.
But what’s happening in market is this:
- Yes we saw some profiting taking, we saw that in the US on Friday but the S&P 500 rose the third week with China facing stocks pushing the S&P500’s market cap above $50 trillion for the first time.
- And here in Australia our market looks set to close of the quarter with a US$176.2 billion boost in value, its best quarter last late last year seeing our market now sit at US$2.85 trillion in value
But what’s happening in market is this:
- Yes we saw some profiting taking, we saw that in the US on Friday but the S&P 500 rose the third week with China facing stocks pushing the S&P500’s market cap above $50 trillion for the first time.
- And here in Australia our market looks set to close of the quarter with a US$176.2 billion boost in value, its best quarter last late last year seeing our market now sit at US$2.85 trillion in value
So why are stocks so bullish?
Investors are optimistic about the China and the US. China rolled out new stimulus measures on Friday easing homebuyer rules after the China’s central bank cut rate last week. Plus in the US we had the Fed’s inflation gauge fall as expected, signalling room for more rate cuts with 2% of cuts expected. US Bond yields dropped back to July 2023 levels, offering 3.7%, and the Australian dollar has bounced back above 0.6915.
Investors are optimistic about the China and the US. China rolled out new stimulus measures on Friday easing homebuyer rules after the China’s central bank cut rate last week. Plus in the US we had the Fed’s inflation gauge fall as expected, signalling room for more rate cuts with 2% of cuts expected. US Bond yields dropped back to July 2023 levels, offering 3.7%, and the Australian dollar has bounced back above 0.6915.
So what to watch today China-facing stocks and commodities are on watch. Including lithium stocks like Liontown $Liontown Resources Ltd (LTR.AU)$ that made its first shipment of spodumene. Its shares rose 22% last week. Pilbara Minerals $Pilbara Minerals Ltd (PLS.AU)$ Australia’s biggest lithium company should be kept on your radar after 13% last week, with traders looking for more gains. Also watch iron ore stocks.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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