Share trading is expected to start stronger today

Carnage on Wall St may have been averted as US stocks finished higher.

Shares carnage likely to ease

The Australian share market should bring some relief to superannuation funds today as it is expected to open higher this morning, taking a lead from the stronger close on the New York stock exchange on Tuesday.

Overnight, the US Dow Jones index recovered the previous 24 hours’ losses amounting to tens of billions of dollars.

Around the world this week, stock markets have experienced levels of volatility not seen in the past six years.

On the US exchange, a massive sell-off began late last week sparked by a sharp rise in bond yields that led to concerns the Federal Reserve Bank was about to jack up interest rates.

The Australian Securities Exchange (ASX) saw $60 billion wiped off the value of shares yesterday, giving rise to fears that superannuation funds would slide in value.

But with the partial Wall St recovery overnight, pundits are hoping that the total decline may have been averted.

The ABC reported that in a continuation of losses earlier this week, “the Dow Jones (on Tuesday) suffered its biggest points drop in a single day (1175 points)” and the benchmark ASX 200 index dropped 3.2 per cent to end on 5833 points. The broader All Ordinaries index dropped by 3.2 per cent to 5930.

Carnage was felt across all major Asian exchanges.

This morning, the benchmark ASX futures strengthened by 1.7 per cent, foreshadowing a higher opening point for today’s trading.

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    COMMENTS

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    Tib
    7th Feb 2018
    10:48am
    It was reported on the ABC that the US were concerned that things we're going too well which would increase inflation. Can't please everyone no matter what you do.
    indi
    7th Feb 2018
    11:59am
    I think someone is making more money than me out of my super it seems
    johnp
    7th Feb 2018
    1:17pm
    Indi - You have got that right, we are being taken for a ride - unless you have got one of the good industry super funds working for you
    Rae
    7th Feb 2018
    1:40pm
    Why would you have anything but an industry fund? Surely people read the prospectus and check out fees and charges first.
    Old Geezer
    8th Feb 2018
    11:37am
    I certainly would not have an industry fund myself. The only fund for me is a SMSF where I can control it.

    7th Feb 2018
    2:35pm
    Yesterday was a good day to add to your equity portfolio
    Tib
    7th Feb 2018
    3:19pm
    Well said Raphael. Make good investments when everyone else is panicking.
    Rae
    7th Feb 2018
    5:07pm
    Traders need volatility to make money.
    Learning-Life
    7th Feb 2018
    5:24pm
    So much chaos in humanity decision quality. Handling money is like managing sex. Respect and compassion are tools that calm the mind (Thinking Blue being Beyond Blue never Feeling Blue). So same sex (hormone based) don't attract (see Eunuchs in Koran and Bible) and the buy low sell high money management processes create chaos so time to quit the markets and amalgamate business, community and government (no politicians only civil servants) to collaborate doing what is right for health, environment, safety and quality giving to make it right (in righteous perseverance). All can have wisdom and joy if they sacrifice. Watch President Trump bring the old way down and see how Block Chain (eg Power Ledger) lays a path for going forward where everyone has a purpose and place in society.
    Rae
    8th Feb 2018
    10:18am
    The article is about trading. Superannuation is long term investment. Two very different things.
    Adrianus
    10th Feb 2018
    10:31am
    It's the institutional investors which can offer some stability in share markets, particularly with the ASX. Not that they have an obligation to do so but they are often stuck within relatively tight parameters. Union funds deal in derivatives offshore, I suppose as a tool for risk management.
    I have followed (without investing) tips given by expert analysers with their own portfolios over a number of years. Guess what? Very rarely do they hold a rally for long and any gains on the rally are soon lost. I wonder why??? :)
    As the story goes, if a taxi driver tells you a good tip, then it's no longer a good tip.