MARKET TRENDS (3rd June 18)

Important Economic Announcements for the week:

Tues: RBA Interest Rate decision 12.30 pm
Wed: AUD GDP 9.30 am
Thurs: Eur GDP 5 pm

Short Thoughts

The market is generally now in a limbo state whereby the Italian situation has caused some knee-jerk reaction but markets seem to have got out of it. The market is worried the likely new government would be anti-euro and caused a potential Itaxit. Also, the debt situation in Italy is much worse than Greece whereby they have a debt of around 2.5 trillion versus 500 billion for Greece. Reuters sum it up best through this sentence: “Investors believe the election – which sources said could be as early as July 29 – will deliver an even stronger mandate for anti-establishment, eurosceptic politicians, casting doubt on Italy’s future in the eurozone”.

Over at our local front, the …