The market has continued to move sideways over the past week maintaining the trading range it has been in for the last couple of months.
I expect that it will continue this trend into Christmas, as there are no real signs of a recovery in the economy. The interest rate in Australia is expected to stay on hold until next year.
The Feds in the US will meet on the 18th of this month. The US has been hinting of a rate raise but I for one would be surprised if they raised the rate before Christmas so I expect them to stay on hold for now.
Oil remains flat. Gold pulled back last week. The exchange rate has jumped this week currently around $0.73 per US dollar.
There are plenty of corporate actions going on at present as companies look to raise capital to reduce debt or make acquisitions. Investors need to make sure that they are looking closely at these, as there are some good opportunities available.
The big surprise was Cardno coming out with a rights issue of $1 per share when the price is currently trading at $3 per share. This has pushed the price of Cardno back to $1.75 per share however holders should still look at this offer, as your holding will be diluted if you do not accept.