currency trade

Sunset Strip > Trading Day Wrap From Blue Ocean 20170615

Mathan Somasundaram

Local market was once again at the mercy of global investor currency trade…but this time on the negative side. Market was punting on USD weakness to drive AUD higher…we saw a slight move higher…now they are unwinding positions as negative global market sentiment returns after weak inflation and weak retail... Show More

Sunset Strip > Trading Day Wrap From Blue Ocean 20170614

Mathan Somasundaram

Local market was once again up on global investor currency trade. Weaker USD is bad for Japanese Manufacturers and good for Aussie Banks. Even miners recovered on stable China data while beaten up retailers saw some love on value and on rate-cut hope after another weak consumer sentiment. The best... Show More

Sunset Strip > Trading Day Wrap From Blue Ocean 20170613

Mathan Somasundaram

Local market bounced hard as global investors jumped on our banks on the currency bet going into US Fed meeting. The market is worried that US Fiscal delays and patchy economic data to drive a downgrade in US Fed outlook and bring down the USD. AUDUSD likely stay strong on... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market jumped out on the US positive lead and then just fell apart to finish a slight positive day with “Fed Scare”. The risk catalyst for the market has moved from bottom-up stocks update to top-down macro updates. We have RBA speech tomorrow followed by Fed speech, ADP employment... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market pulled back with global sentiment as central banks remain on sidelines after markets ran up on stimulus hope. The Aussie market today was a reverse of yesterday as miners and gold were up while just about everything else was down. Super markets were seeing some selling pressure as... Show More

Equity Industrial Engineer | Horses for courses

Mathan Somasundaram

Macro outlook: Central banks and growth worries remain the key risks for global equity markets. Recent selloff on short term currency strength offers another opportunity into growth sectors like Materials, Commercial Services, Gaming, Tourism, Health Care and Information Technology. The defensive yields on offer from Transport Infrastructure, Telecommunication Services and... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started positive on slightly positive global sentiment and Oil price while the lack of optimism going into ECB meeting tonight drove the market into slight negative close. There were a number of central banks in action in the last 24 hours. Canada left their massive rate of 0.5%... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started positive on global lead and strong commodities and finished about the same level after pulling back a bit on weak Job market update. The Chinese NPC delivered a downgrade that most would have expected on the weekend while the stimulus plans are more about stabilising fear than... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started relatively positive and the optimism subsided through the day to finish a slight positive. Banks and Resources were the main drivers again, but there were signs of profit taking from the morning pop. The global investors were back buying banks and miners as the currency moved up,... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started positive and then went on a rampant short covering run to deliver a strong positive finish after a weaker than expected unemployment data . The bounce was mainly driven by Oil recovery. Non OPEC players showing signs of working towards a deal with OPEC to first freeze... Show More

SHIELD – Sustainable High Yield | Yield trade to return as currency strengthens

Mathan Somasundaram

Macro Outlook: Central banks policies continue to remain a deterrent for the global economy to evolve. The return of the currency wars will maintain low growth, falling commodities and low to negative interest rates into the future. Falling bond yields and low growth will drive investors towards high yielding Australian... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market had a solid day on the optimism of global rebound. US markets are closed tonight while Japan had a big bounce and China did not collapse after returning post CNY. Japanese economy contacted faster in Q4 than expected while China had exports drop and imports drop even further... Show More

Equity Financial Engineer | Banks to see yield support while property under stress

Mathan Somasundaram

Bank sector: Global macro and central bank risks remain, but the downgrade cycle is mainly in the price. The yield premium and central bank easing bias suggests that banks should see support despite weakening outlook. Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started negative on market uncertainty before the shrinking bond yields pushed up the yield trade to deliver a solid positive day. Global markets went into last night with everyone wearing their “chicken little” suits screaming the “sky is falling”. The global markets were jumping on shadows. US Fed... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market ran over pessimist with another 1.5% move up on US Fed doing what most of us expected them to do. The world is artificially being held down to low growth and low inflation to avoid any recession risks by central banks and governments. The problem with that solution... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started negative on global sentiment with falling commodities and stayed there. Resources were under the pump and Energy was leading the pack down. WPL calling off merger plans with OSH could not have been on a worse day for OSH shareholders and may be that was part of... Show More

Equity Engineer – December 2015 | Christmas rally – chase yield, market will

Mathan Somasundaram

Market view: We maintain a bullish long term view on the Australian equity market with 12 month index target level of 6100. The RBA move in February and May, and the housing bubble with banks pushing up rates out of cycle, has made equities the preferred risk/return option for investors... Show More

Equity Engineer – November 2015 | Central banks setting the path for low growth and yield trade

Mathan Somasundaram

Global market outlook: The political environment and central banks are not allowing market forces to kill off the weaker industries and grow the stronger industries. The continued low interest rate and deflated currency outlook will help keep weak industries going for longer and in turn, the inefficient allocation of resources... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market recovered some of the losses from yesterday on low volume. Global market fear indices are showing signs of fading pessimism and rising optimism. Australia will continue to see global investors sell on currency worry while local investors buy on yield support. The domestic market outlook remains negative while... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market ran into overseas investor selling pressure flowing from the US Fed comments and growth downgrades. The global investors are telling the Aussie market that it is going to get a lot worse before it gets better. Australia is trading like an emerging market due to our commodity dependency,... Show More