Local shares are once again being hit by intraday mood swings as markets keep an eye on the US Federal Reserve’s interest rate decision next week.
Like the first two days of this week, the market is oscillating quite a bit, but remains stuck in a narrow range as investors look for some kind of guidance.
“There’s definitely a high level of anxiety among investors,” said Gary Huxtable, client adviser at Atlantic Pacific Securities. “This anxiety is showing up in the erratic mood swings of the market today.”
With the reporting season over, investors are focused on the US markets, he said.
“With expectations for a US Fed hike close to a certainty, we’re almost on the home stretch. But there’s one last hurdle to overcome, this Friday’s non-farm payrolls,” he said. “investors will be wary that if the number misses, we may see a slight unwinding of the March Fed hike expectations which have been close to fully priced in by markets.”
Most regional markets are also slightly lower today, feeling a similar trepidation after the steep post-US election rally, with the Nikkei falling 0.5 per cent, Korea’s Kospi marginally lower and the Shanghai Composite flat.