Another up week for the market.
It has been a strong recovery indeed.
The ASX 200 closed 5526 last week, which is a recovery of 366 points from the lows of last month, or 7%. Still some way to go before it gets back to the recent high of 5640.
The news out of the US with interest rates increasing is not as bad as it seemed some weeks ago.
Analysts have realised that the mining sector has stopped capital expansion and is now settling into production. A low Australian dollar will assist this sector with sales.
Consumer and business confidence is still at an all time low. And why wouldn't it be when unemployment is tipping 10% here in Townsville. I expect that this will be the case for some time. Data is showing that people are focused on paying down debt and purchases are limited to necessities. Big-ticket items are off the Christmas list for now.
The Medibank float numbers are out. Getting a decent size parcel in the float will be near impossible as demand just from the retails sector is 3 times as what is on offer.
We are not in a Bull market yet but investors are more confident.