The positive leads from U.S. markets may not impact much on
local stocks especially the currency-sensitive ones with the rate
pause initiated by the Reserve Bank of Australia (
), analysts say.
The negative take of investors on the RBA's decision has
already been seen on Tuesday's finish, which recorded a decline.
Market analysts from IG Markets, CMC Markets, and OptionsXpress
by Charles Schwab note that this disappointing move on the part
of the RBA will still dwell on Wednesday's market trends.
Although the rate pause, which keeps benchmark rates at 4.25
percent, will bode well for the Aussie dollar, some investors are
wary on its impact on the local industries especially the
property and construction sectors.
IG Markets analyst Stan Shamu says the beneficiaries of the
RBA's rate pause are risk assets of the mining sector.
"However, with risk assets (particularly in the commodities
space) gaining ground overnight, we are likely to see an early
bounce for Australian shares. BHP Billiton reported its
first-half results this morning. At first glance it seems it
slightly missed analysts' underlying earnings forecasts. The
interim dividend of 55 US cents also missed expectations of 57 US
cents. Encouragingly, BHP beat consensus on iron ore (US$7.9
billion versus US$7.77 billion expected) and petroleum (US$3.9
billion versus US$3.2b anticipated). However, it slightly missed
in the coal division, which is not a big surprise," notes
Shamu adds that ahead of the open, we are calling the Aussie
market up 0.4% at 4292. He says that having failed to
successfully defend early gains this week we might see the market
drift through the session.
Ben Le Brun, market analyst at OptionsXpress points out that
the Greek debt resolution is another hurdle to negotiate as it
drags on and on. T
"There is little doubt that should Greece come to an agreement
with private debt holders and agree to tough austerity measures
this would be viewed favourably in risk asset markets,".adds Le