Wednesday, July 6, 2011

Carbon Tax Likely to Pass, but What then?

- Markets are off slightly this morning, this looks like a slow grind upwards in July.

- Picked up bsl, and ost on price action out of congested range - with the catalyst of carbon tax exemptions for steel producers for 2 years.

- Commodities are up across the board, but for commodity equities we should wait until the carbon tax details this Sunday. Gold is holding up well, and NCM is now on the radar.

- I expect Macau to continue it's revenue growth over the 2nd half of the year, and expect Galaxy with its newest hotel to be the main benefactor of both the increasing revenue trend, with market share gain and increasing margins.

- retail sales came in -0.2% v expectations on 0.6, RBA keeps rates on hold as expected - unlikely to raise for the rest of the year
- Moody's cut Portugals rating - Continuing the Euro woes, however seeing some resilience in the eur/usd pair this morning
- ECB rates tommorrow - will be the next catalyst for eur/usd
- and the big one.. US employment on Friday.