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The ASX has shown the same concerning pattern seen in equity markets globally throughout August. It has barely broken out of the 5500-5560 trading range through much of the month, despite what has in many respects been quite a disappointing earnings season
Trading volume in August has by-and-large been much lower than the 100-day moving average. There does seem to be a feeling in global markets that many investors are waiting for everyone to return from northern hemisphere summer holidays to see some direction in markets.
With valuations high, and yields low, we have seen much of the gains in the past week being driven by funds seeking out the more safe-haven-like parts of the market, such as utilities, consumer staples and piling into higher yielding names.