Australian shares surged to new highs today after the US Federal Reserve's surprise decision to stick with its stimulus measures.
Investors have been cautious ahead of the Fed's meeting as the central bank was possibly begin to tightening its quantitative program, but instead the Fed elected not to pull back on a $US85 billion bond buying per month. The Australian dollar is expected to become stronger against the US dollar and once again, exports will become cheaper.
Continued market momentum will depend on manufacturing figures out of China early next week.
Thursday, September 19, 2013
Wednesday, September 18, 2013
Stock Watch (ASX:CCL)
Stock Watch:
ASX Code: CCL ( Coca-Cola Amatil)
Coca-Cola Amatil (ASX: CCL) – the manufacturer and distributor of one of the most popular brand in the world. A high Australian dollar and difficult trading conditions caused earnings for the first half to fall 6.9%, a better than expected result. However, the company also announced that it expected earnings for the full year to fall by 4%, after having previously advised it expected earnings to be flat.
This news reflected the share prices as it is now trading for $12.36. As the Australian dollar has fell by 10 cents in the past year and improved trading conditions, investors can expect this company to continue to deliver consistent returns.
ASX Code: CCL ( Coca-Cola Amatil)
Coca-Cola Amatil (ASX: CCL) – the manufacturer and distributor of one of the most popular brand in the world. A high Australian dollar and difficult trading conditions caused earnings for the first half to fall 6.9%, a better than expected result. However, the company also announced that it expected earnings for the full year to fall by 4%, after having previously advised it expected earnings to be flat.
This news reflected the share prices as it is now trading for $12.36. As the Australian dollar has fell by 10 cents in the past year and improved trading conditions, investors can expect this company to continue to deliver consistent returns.
US Federal Reserve Stimulus Program
The Federal Reserve began a two day meeting today as speculation mounts that chairman Ben Bernanke is preparing to announce cut-backs on the US's $85bn a month economic stimulus program. Bernanke will hold a press conference Wednesday (US time) to discuss the Federal Reserve plans for the future of the US economy.
As the Federal Reserve is currently in a two day meeting, Australian shares are weaker as investors wait for decision from the US Federal Reserve on its stimulus program. At the close, the benchmark S&P/ASX200 index was 13.1 points, or 0.25 per cent, lower at 5238.1.
As the Federal Reserve is currently in a two day meeting, Australian shares are weaker as investors wait for decision from the US Federal Reserve on its stimulus program. At the close, the benchmark S&P/ASX200 index was 13.1 points, or 0.25 per cent, lower at 5238.1.
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