Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market pulled back again from just below 6000 territory with commodity price risks. Turnover was just below $4.8b. US markets remains volatile with US Fed minutes giving mixed signals and corporate result season coming up. We continue to expect outlook statements to be negative in US corporate season and drive some profit taking and USD weakness. The short term macro still remains positive for buying Gold equities since mid March. The US markets are betting on rates remaining low for longer and any raise is likely to be slow and measured at best. It is becoming clearer that US corporate growth is going to struggle with GDP growth in Q1. The global macro and commodity supply/demand dynamics points to further and prolonged downside risk for Iron Ore and Oil. The gun shy government with no plans points to substantial risk in the next 12-18mths for the domestic economy as the unemployment goes past 7% and the terms of trade shrinks. The market has already priced in 25-50bps cuts this year and almost everyone expects a cut in May.
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...