Equity Market on Recovery Mode, Is the Market Bullish Too Early?

  • Jun 26, 2020 AEST
  • Team Kalkine

Australian markets have not reached closer to levels seen before the March pullback, but there has been a decent recovery over the recent months. More than 40% of the index weight in S&P/ASX 200 Index includes financials, consumer discretionary, energy and real estate – sectors that are perhaps hardest hit by the COVID-19 crisis.

Incoming economic data will continue to reflect pain for some time, as lockdowns were at the peak in April. But the Australian economy has been reopening, and leading indicators are suggesting a revival in economic activities.

As per the latest Commonwealth Bank Flash Composite PMI® for June, Australian private sector depicted revival in output, as businesses continue to embrace lesser restrictions amid the COVID-19 situation. Businesses continued to reduce employment due to unused capacity, but new orders stabilised.

Composite PMI came at 52.6 in June after clocking 28.1 in the previous month, indicating an expansion from contraction. Some firms that were closed earlier restarted their operations in June. Services sector posted the first rise in activity in five months, while the manufacturing sector was falling but at a slower pace.

#Australia #Economics #Data #Kalkine

 


Disclaimer
The video has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above video is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.

 

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