Australian stocks have have been in the wars recently. The ASX 200 has fallen for six consecutive sessions, losing 5.29% in the process.
With Tuesday’s 0.5% decline, the index has now equaled the second-longest losing streak seen in the past five years.
Another decline today will see the index suffer the longest losing streak seen since July 2010.
While SPI futures are pointing higher, the June contract is indicating a lift of 3 points on the open, so too are bond yields – something that may weigh on dominant higher-yielding sectors such as financials, utilities and consumer staples.
One suspects that RBA governor Glenn Sevens’ speech delivered at 12.50pm today in Brisbane will determine whether or not the index extends its losing streak to seven consecutive sessions.
To help buttress support for higher-yielding stocks, many will be hoping he indicates that interest rates could be lowered further.
If that doesn’t eventuate, it could well be another session to forget for Australian investors.