Bulls playing Chicken….

• Geopolitically, there is a lot going on. European leaders supporting the Ukraine throughout Trump and Putin’s negotiations and hope for a ceasefire in Gaza. Sadly, there is little resolution on either front at this point.
• Corporate reporting season is in full swing both here and in the US. Strong US earnings, even with mixed signals on jobs and inflation, have seen the S&P 500 rally (driven primarily by Technology and Communications Services). The index is up +29% from its April lows.
• The US Fed is expected to cut rates by 25 basis points in September. New Zealand has just today cut their official rate by 25 basis points to 3%.
• After hitting a new record on Monday, the S&P/ASX 200 retreated yesterday, pulled down by CSL missing its earnings forecast and creating uncertainty with a restructuring plan. We are at 8,908.5 as I type.
• The Aussie dollar fell from US$65.13 to US$64.91. Gold remains the stand out commodity with the All Ords Gold Index up +44.158 year to date.
• Westpac Melbourne Institute is reporting Consumer Sentiment has risen in August to its highest level since 2022 of the back of the RBA’s latest rate cut (to 3.6%). The Banks have yet to alter their 3% buffer for loan repayments on applications.
• Buyers still outnumber sellers in the tightly held Western Suburbs. Call me today for a plan to see your home get to market before the usual Spring rush.

Jody Fewster
Please contact me on 0414 688 988 or by email at jody.fewster@raywhite.com