Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market recovered back towards the top of the recent 6 week trading band high with better oil price and retail bargain hunting. Turnover was just above $3.8b. Today’s low volume retail push shows the lack of conviction in the market to push to 6000 without a rate cut. Consumers are likely to further cut spending with rising unemployment (i.e. above 7%), rising costs, high level of debt and asset bubble worries. The lack of any employment initiatives will drive up risk for all consumer related domestic sectors. We are likely to see savings growth outstrip spending growth for the near future. The commodity boom to manufacturing burst over the past year has left Australia with asset bubbles that can’t be sustained without employment and wages growth. Capex plans show that there are no plans in corporates or government to absorb the substantially negative unemployment outlook. The three ways Mexican stand-off between consumers, corporate and government needs to be broken to drive growth in the medium to long term.

Mathan Somasundaram
Founder & CEO
Deep Data Analytics

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter