GIM Trading | Reviews & Analysis

As we review the December quarter Consumer Price Index (CPI), it's evident that Australian inflation is continuing to moderate, albeit still above the Reserve Bank of Australia's (RBA) target of 2-3%. The trimmed mean CPI rose by 0.8% over the quarter, leading to an annual increase of 4.2%. This persistent inflation is a key reason the RBA has increased its cash rate to 4.35%—a critical benchmark for both borrowers and depositors. "While we see signs of moderating inflation, we must remain cautious. The RBA's aggressive cash rate adjustments have set a new landscape for investment," states Stephen Cubis, GIM Trading's CEO . "This shift significantly influences our approach to both equities and fixed interest assets." Following a GIM Trading analyst review, broker responses to the latest CPI data indicate a consensus that rates may have peaked. Citi now anticipates a cash rate stabilizing at 4.35%, while Morgan Stanley predicts no cuts in 2024. &q

Key Questions for the Australian Stock Market in 2024 The Australian stock market has started 2024 on a positive note. While the S&P/ASX 200 Index (ASX: XJO) has only increased by around 0.2% so far, the index recently hit a new all-time high, marking a 12% increase since November 2023. With the full year ahead, investors are curious about what’s in store. Below are three major questions for the ASX 200 in 2024. Will the Australian Stock Market Hit New Highs? The recent record high of 7,658.7 points for the ASX 200 is a welcome development, coming after more than two years without a new peak. This has sparked investor interest in how much further the market can rise. Can the ASX 200 hit 7,700 or even 8,000 points? Following a review from GIM Trading analysts, this will largely depend on economic conditions, particularly interest rates. If rates begin to fall, as many investors expect, the market could receive a significant boost. At GIM Trading , we anticipate that as long as

The 2024 financial landscape presents a dynamic mix of challenges and opportunities for investors, particularly for Australian markets. A GIM Trading review found that despite global economic uncertainties, there is significant optimism for strong performance in the Australian Stock Exchange (ASX) and the Australian dollar, bolstered by both local factors and broader geopolitical dynamics. ASX Set to Outperform Global Markets As we look ahead to 2024, the ASX 200 is positioned for impressive growth. AMP and Tribeca Capital forecast a potential rise in the ASX to 7,775 and 8,200 points respectively, representing about 9-10% growth when dividends are included. This anticipated performance highlights a positive shift, especially following the ASX’s underperformance in 2023 compared to U.S. indices like the S&P 500 and the tech-heavy Nasdaq Composite. Following a review from GIM Trading analysts, one of the main drivers for the ASX’s growth is its exposure to key sectors such as