Yesterday around the world was quite a lame day, but in Australia the stock market took a hit.
The issue is that the inflation data practically wiped out the bets for next week potential rate cut. Technically speaking the chances went from 15% to 6%.
Moreover it signals the potential end of the easing cycle and rate rising cycles are much more difficult for shares.
My personal take is that at this point rate cut do very little apart inflating the already inflated real estate market.
If there are issues next year (most likely) we will likely see Australian Quantitative Easing.
Ps. The 5400 support has been broken, next one 5200.
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