Over the past two weeks the market has continued to trade at the top of the trading range. The market fell into this trading range back in August 2015 and has lacked the support to break through although having a number of attempts.
As we move towards the end of the financial year as it stands now the ASX 200 is down 4.62% but compared to the rest of the world we are doing well. The US is down around 4.29% while London is down 12.14%, Germany 16.31%, Hong Kong 28.03%, Japan 17.13% and China 36.45%. Overall Australia has performed well on the world stage.
Keep in mind historical performance does not guarantee future performance, regards exports Iron Ore price is down 6.97% year to date, copper 27.34% while gold is up 3.61%. Although Australia is a big exporter of Gold it is a small market compared to Iron Ore. Our exchange rate is down 8.3% for the year which is assisting exports.
With the election looming we may see the market rally towards the end of the financial years as promises of Government spending provide work and stimulus to the economy. I expect that we should see the market hold up for now given interest rates at lowest levels ever. The only big concern is China and any surprise announcements that they might have in the coming weeks.