Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started positive and ran into WBC result that set a negative tone for the bank reporting season. The RBA rate decision tomorrow and Greece saga remains the big short term catalysts in the next few days. Greece is due to pay back 1 Billion Euro by next week and have plans for structural improvement. This can either end in tears or everyone kicking the can down the road. Global politics suggest kick the can down the road, but nothing can be taken for granted. Why RBA should or should not cut rates? All signs are pointing to RBA cutting rates tomorrow despite it being a complete waste. The financial sector and the property sector need the cut to sustain the bubbles and RBA will deliver to keep the charade going. If we get a rate cut, then the yield stocks and global earners will get another kicker up. Given that over 70% are betting on a rate cut, the risk for the market is if the rates are left unchanged. (VIEW LINK)