Australian Equities Expected to Roll On

Australia equities are a resilient lot, shrugging off a slew of economic headwinds this year to trade at nearly six-year highs. And analysts say the good times are expected to roll on.

The country’s benchmark S&P/ASX 200 has clocked steady gains of almost 4 percent so far this year to trade near the 5,543 level on Monday, despite a slowdown in top trading partner China, subdued consumer confidence and a persistently strong Australian dollar. Last Friday, the index touched a six-year peak of 5,561.

“My central outlook is that the market will move gradually higher in line with moderate earnings growth over the next few months. It’s a period of gently upward sloping drift,” said Ric Spooner, chief market analyst at CMC, who sees the index climbing to 5,700 by year-end, or 3 percent higher than current levels.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.