The market remains trapped in the sideways movement since August 2015, indications are that the market would like to move higher but the lacks any strong indicator to assist. With election coming up both at home in Australia and in the United States I expect that the market will maintain this trend for some time yet.
The most recent Fed meeting suggesting a cautious approach to raising interest rates given risks from a slowing global economy. Commodity prices and bond yields were higher, and so too the Aussie dollar. On the domestic economic front, construction data and visitor arrivals figures were released this week providing some support on Thursday. Overseas, Federal Reserve Chair Janet Yellen delivered a speech and the European Central Bank released its minutes this week, both events providing support but no increased confidence for the markets.
In company news, Harvey Norman, Nurfarm and ARB Corporation are among a number of companies that trade ex-dividend this week with the Bank of Queensland releasing its half-year result.
As investors questioning the effectiveness of central banks given the slowing global economy, Bond yields and the Aussie dollar were lower, and so too most commodities, although the precious metals segment finished higher.
The current weakness has provided opportunity to continue to dollar cost average in to the market as many companies are now looking undervalued and yields are high.