Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 20 March 2015

CBA record high

Stocks soar on interest rate news

A bit tied up yesterday, so slow off the mark on this.

The US Federal Reserve Minutes saw the removal of the word "patient", but nevertheless the statement was generally perceived to be dovish as stronger data is awaited, and a US rate hike will not be seen in April.

The has ramifications for Australian economy too, and it sparked quite a response on our own share markets.

With bulk commodity prices continuing their freefall - the iron ore price now down more than 70 percent from its 2011 peak - further easing in Australia is considered likely.

The ASX 200 (XJO) soared by more than 108 points to 5,950 in response.

We have not seen the XJO at 6,000 since way back in kate 2007, but we're getting close.

Commonwealth Bank went on a tear adding 2.38 percent to close at another new record high of $95.61.

Markets are now pricing in a further interest rate cut by May and two before the end of the year.