Equity Market Engineer | US market and commodity risk to offer another buying opportunity

Slowing global growth, weak commodity prices and rising US inflation ahead of the US reporting season remain potential catalysts set to drive profit taking in early April. US Fed has locked its path to interest rate normalisation to the rising inflation band wagon. Despite weak expectations, the US reporting season is likely to drive up volatility and risk of profit taking in early April before recovering on central bank dovishness. We continue to see low global growth outlook and falling domestic currency to support our equity market recovery on the chase for yield. The likely profit taking in early April will bring investors back to the market. They are expected to reinvest their substantial dividend payments (i.e. $13b over two weeks) to support late April recovery. (VIEW LINK)