Saxo's Market Strategist: Australia's ASX200 could likely to take out a new all-time high. However CPI is a focus this week
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In Australia, it's going to be a really interesting week in terms of macroeconomic events as on Tuesday evening (European timezones), inflation figures go public. We're glad we can share Jessica Amir's, Market Strategist at Saxo Bank, comments on the release. Here's what we get.
Hotter data could further fuel the AUD and a likely fuel a sell-off in tech stocks and real estate
Australia's ASX200 could likely to take out a new all-time high..... this is supported by the rally in commodities and expected higher earnings from mining companies, which make up 25% of the market. However CPI is a focus this week. Our technical analyst backs up this thinking, that the ASX200 is likely to hit a new all high- for more click here. But the danger this week is if Q4 CPI is hotter than expected on Wednesday, then equities could see profit taking. However overall sentiment is bullish for the ASX as demand for copper and iron ore is likely to pick up after CNY. CPI is expected to rise to 5.8% YoY from 5.6% (trimmed Mean CPI). And CPI YoY is expected to rise to 7.7% YoY, from 7.3%. Hotter data could further fuel the AUD and a likely fuel a sell-off in tech stocks and real estate. In company news to watch, iron ore company Champion Iron (CIA) reports quarterly earnings. Given the iron ore price is up 66% from its low, its outlook is expected to be optimistic.
