US markets soft on Friday after a positive week, commodities lower, ASX futures down 12 points

Despite a move lower on Friday night for US markets, European markets were stronger and over the week the S&P 500 (today's first chart) finished 1.16% higher, with the ASX 200's weekly gain up 2.39%. Despite softer markets in the US, S&P 500 volatility futures actually declined slightly and as you can see from today's second chart, expected equity volatility in the US is sitting right on its bum - the fear in the market as indicated on the chart has dissipated and with an absence of macroeconomic fear, the focus will fall squarely on corporate earnings. The US earnings season so far hasn't been that impressive - when you take out the very top end, S&P 500 company earnings contracted on average versus the same 2014 period. Any misses in estimates haven't been alarming enough to ignite a fresh down trend though, you can see the S&P 500 on today's first chart is presently consolidating nearer the top of its medium-term range; and even if a break lower out of this consolidation emerges, there's plenty of room there to move before the market appears bearish.

To today's last chart, and Australia's S&P 200 is hitting up against its 5,700 selling resistance. It doesn't appear as though it'll be breaking higher above that level today, so we'll need to see what global markets have in store for us tonight. Looking at the way it is consolidating and hitting its head on the 5,700 ceiling, don't be surprised to see this market break lower before it gathers the momentum to establish new two-month highs. The market just appears to be happy to trade between 5,500 and 5,750 for now.


Source: Rivkin, Saxo Bank

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How to apply for the FGG IPO

As was the case with Future Generation Investment Company (FGX), Rivkin will be working with its broking partner CMC Markets in donating the broker stamping fees to charities associated with the investment company’s cause – in this case, youth mental health and homelessness.

With this in mind, we strongly urge you to follow the following steps accurately so Rivkin can add to the philanthropic nature of this IPO.

  1. Visit http://www.futuregeninvest.com.au/Global/prospectus.pdf to download and read the prospectus
  2. IMPORTANT: complete the Broker Firm Application Form on page 87 of the prospectus, this way we can donate the stamping fees
  3. Ensure you have sufficient funds in your Rivkin Securities stockbroking account to pay for the stock
  4. Enter the Broker Code 02662
  5. Enter the Adviser Code 0001
  6. Email your application to customerservice@rivkin.com.au or post it to:

Rivkin Securities FGG Offer
Po Box 1524
Double Bay 1360

Don’t have a Rivkin Securities stockbroking account? Open one now by emailing customerservice@rivkin.com.au (your Relationship Manager will call you back and pre-fill forms etc.) or phoning 1300 748 546. Our online brokerage is $11.00 or 0.11%, $9.90 or 0.11% for SMSFs that use Rivkin Super. PLUS we go the extra mile and donate non-core earnings like broking fees from this IPO to charity. You’re doing yourselves a favour and doing those in need a favour by getting involved.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

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