Sharemarket Update

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Date: 01/07/2011

The stock market's still got the jitters - it's a confidence thing now, with uncertainties abroad and the two-speed economy at home casting shadows.

While Europe struggles to sort out the Greek economic tragedy, and the American recovery moves in fits and starts, nervousness continues among Australian investors. Our own two-speed economy is adding to the general lack of confidence, with the Reserve bank still hinting at interest rate rises to come. Elio D'Amato, CEO of Lincoln Stock Doctor, says it may be several months, until the next reporting season, before investors begin to re-enter the market with renewed confidence. Elio says China remains the key to Australian prosperity and the signs there continue to be good.While retailers and the property market are still struggling, the main beneficiaries of the two-speed economy, apart from the miners themselves and mining services companies, are telecommunications and healthcare.