Dollar Continues to Weaken, Equities Benefit - ASX Opens Higher 31th March 2016

TORONTO - March 30, 2016 - PRLog -- Baumann Group

Dollar Continues to Weaken, Equities Benefit - ASX to Opens Higher 31^th March 2016

After two days of comments from the Federal Reserve, the $USD has continued to drop, albeit marginally.

Quoting International instability as the main concern, the Federal Reserve head, Janet Yellen, implied that there would not be a rate hike in April and many believe June is cancelled too. The US economy is performing well and the markets over the last month have pulled back the loses seen earlier in the year, yet the Central Bank is unwilling to increase rates at this time.

The run back to equities, which are now seen as less risky, saw the S&P 500 continue to build up over the past week with the technology and healthcare sectors seeing the main gains with large banks still suffering as rates stay the same.

US Market close 31^st March

S&P 500 Up 8.94 (+0.4%) 2,063.95

Dow Jones Up 83.55 (+0.5%) 17,716.66

NASDAQ Up 22.67 (+0.5%) 4,869.29

The news should feed into Asian trading on Thursday as the USD dipped against several regional currencies.

The $AUD saw a slight gain as the ASX 200 looks set to open slightly higher on the dovish sentiment out of the US.

Both ANZ and Westpac have issued guidance that they expect bad debt to have increased over the year with ANZ citing its exposure to Aussie miners. The bank said that there could be as much as $100mn AUD to add to its bad debt column. ANZ (ANZ.AX) has fallen over 10% in the last 5 days, with Westpac (WBC.AX) only fairing slightly better with a drop of just over 8%.

Other major news on the ASX 200 saw Virgin Australia (VAH.AX) fell more than 9% on the news that one of its major stakeholder, Air New Zealand said that it was looking at selling its 26% stake. Virgin has been struggling against Quantas in the domestic market.

ASX 200 Up 5.30 (+0.10%) 5,081.50

The ASX should see some gains today as investors look to take advantage of the slip in the $USD, it opened higher, up 30.75 (+0.61%) to 5,081.50, in morning trading.

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