Atlantic Pacific Securities Market View: Energy and gold shares leading the market at the open

18 July 2016 -- SYDNEY: The local share market had a subdued start to the week with strong US retail sales data offset by news of the Turkish military coup over the weekend. 

“The one exception would be the energy sector, with the likes of Santos (STO) and Woodside Petroleum (WPL) up over 1%,” said Gary Huxtable, client adviser at Atlantic Pacific Securities. 

However, Huxtable notes that over the last 7 days the big movers such as banks and miners are taking a breather today.

“Some of the more defensive sectors such as utilities and gold miners come to the fore again,” said Huxtable. 

“A beat on Chinese GDP data has been seen as a negative for the likes of Fortescue Metals Group (FMG) which is one of the laggards today, as the market appears to have been pricing in more Chinese stimulus to fuel iron ore Demand,”said Huxtable.

Huxtable notes the market should continue at this rate tomorrow.

“The cautiously optimistic mentality of the market should continue leading into tomorrow’s Reserve Bank of Australia (RBA) meeting minutes and the European Central Bank decision later this week,” he said.

Huxtable added, “Both events are potential catalysts for the market to head higher. However, if the market sees a less dovish tone that may not be received favourably and may cause the market to retest the 5400 level.”

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For more information, visit: http://www.apsec.com.au/