By Chris Becker
As I wait for the RBA decision later today, I came across a simple but powerful chart tweeted earlier from David Scutt, Treasury Dealer at Arab Bank. Using Thomson-Reuters data and David’s own calculations, it clearly shows that our local stock market, the ASX200 (Code:XJO) if calculated in USD terms (red), would now be at its pre-GFC high, but for the AUD….
Compare this to the US stock markets (obviously in USD), the broader S&P500 (SPX):
Just a reminder at whats moving Australian stocks – its the financials (about 43% of the ASX200 by composition) – this chart is in nominal AUD terms, but I’ve overlaid the ASX200 index (in green). Financials are above the 2009/2010 reflation high, on the back of lower interest rates – will they keep the index up if the RBA holds – or Dog-forbid and to the bullhawk’s delight, it raises?
