Dow Jones Makes New Record High
Both the Dow Jones and S&P 500 made new record highs on Friday although they did have a small downtick into the close. Markets have held up despite the interest rate hike in the US last week. Analysts will now be trying to predict how many rate hikes are expected for 2018. The market is now optimistic that the Republican tax bill will pass in a form that will bring the corporate tax rate down to 21% (excluding state tax). This should be positive for share prices as more of the company profits will go to shareholders.
Today the Australian Treasury releases the Mid-Year Economic and Fiscal Outlook which provides updated forecasts for growth and compares the government's fiscal performance relative to that outlined in the prior budget. It is expected that forecasts for Australia's gross debt will be reduced somewhat in the coming years as a result of strong mineral exports and decent employment growth.
Silver prices rallied on Friday, closing 0.4% higher, while gold had a volatile session. Early on, gold climbed as high as US$1,261 but fell suddenly, eventually closing at US$1,255. The Aussie dollar retreated from multi-week highs, currently trading at US$0.766 but having almost made it back to US$0.77 early on Friday.
– Australia Mid-Year Fiscal and Economic Outlook 12:15pm AEDT
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This article was written by William O'Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.