Daily Snapshot

Traders should exhibit caution if planning on holding positions over the weekend. China PMI manufacturing data is due 11:00am Sunday (AEST) holding strong potential to disturb market sentiment. With the recent increase in stimulus from the People’s Bank of China, expectations are for a slight expansion in the manufacturing sector. Reforms in China’s National People’s Congress Five-year economic plan in March, outlined the need for inefficient state-owned enterprises within the coal and steel sectors to be closed or merged. The country’s bank is considering supportive methods for these enterprises, promoting establishment of new projects in foreign markets and support for enterprises to manage foreign-exchange risks. Concern still remains surrounding the recent commodity rally. With cheap Chinese steel flooding the international market, pressure continues to mount on anti-dumping legislators. Shifts in global attitude towards inexpensive China exports could act as a road block to the recent China recovery.

The DJIA closed down more than 1% for the first time since the 23^rd of February, driven by Bank of Japan rate decisions and poor earnings performance in stocks. The BoJ decided to leave rates unchanged with no additional stimulus to be pumped into the economy. Worse than expected US GDP data also contributed to the shift in sentiment with quarterly data coming in 0.2% lower at 0.5%. With shifting sentiment, the sell-off continued in Apple stocks as investors reacted to Billionaire investor Carl Icahns bearish comments on the tech giant’s ability to foster future growth. Apple stocks began to slide earlier this week as quarterly earnings missed analyst expectations closing down over 9% since Tuesday. With increasing saturation in the smart-phone market, Tim Cook’s ability to foster innovation is more important now than ever.