5th day of gains for ASX- The Australian stock exchange

Cheer for the markets is going on quite well.

The Australian stock exchange posted gains for the 5^th straight day.

The rally in the global markets and the bond yields coming down has helped the Australian stock exchange to jump for the 5^th straight day. It is up by around 0.5 % in the morning trade. Yesterday there was a big rally in the global stock markets as well as the Australian stock exchange.

The markets held up those big gains and were able to build up from there despite the United States markets falling around 0.5 % overnight.

What is helping the markets to jump and to rally day after day? The ECB’s and other big banks intervention in to the debt problems and the situation and coming up with a solution that would make the debt situation a little bit on the lighter side is helping the markets.

The bond yields which have been flying on the upside lately have been bought down by this act. On Wednesday, we witnessed that the ECB is taking care in solving the debt situation after the market hours. Most of Asia and Australia reacted to that news the next day.

The United States payroll data has also been good indicating that the slowdown in the economy is not as bad as expected. Despite this good news, the United States markets were down between ‘0’ % to ‘0.5’ %.

There was profit booking by some traders and investors which was expected after a huge ‘4.5’ % rally. Meanwhile the United States dollar index has also come down indicating that there will be a rally in the markets as there is an inverse relation between the Dollar and the Stock indices.

Most of the currencies of the world have been helping the dollar to come down by rising against it. Commodities had also supported the markets.

Banks are supporting the markets today despite Standard and Poor’s rating cut. There was a downgrade by the Standard and Poor’s service on four of the major banks in the Australia. Metals and Capital goods have also been supporting in nature.

The banks were the first to fire when the news came out that the ECB is going to help solve the European debt crisis. This week is all set to be in gains and the Australian stock exchange has gained near to 6 % in this week alone making this the best week in the nearby months.

One of the major site’s poll states that the Australian stock exchange will recover in the coming year ‘2012’ on the back of easing of the European debt crisis, a soft Aussie dollar and an ongoing solid Australian economy.    

Tags: asx, Australian stock exchange

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