Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market finished positive on the back of commodity price recovery and M&A optimism. We saw Shell move on BG and FedEx move on TNT while mining & service stocks keep getting opportunistic bids (i.e. EHL turn today). Turnover was just below $4.8b. US markets finished flat overnight after starting positive with worries about US Fed minutes and corporate result season coming up. We think the worries are justified and expect the USD weakness to continue. The short term macro outlook sets the argument for buying Gold equities as we have been saying since mid March. RBA made the mature choice to leave rates unchanged despite 70% of the market expecting a cut. RBA is holding a knife in a gun fight. It needs to pick the battles it can win. None of the three key indicators are currently in RBA’s control.
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...