Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market was slightly negative despite positive US lead. RBA commentary left the market as clear as mud on its economic outlook. RBA downgraded growth outlook and then said that they can cut of needed, but did not bring back the negative bias. The Turnover was a solid $5.3b. Market remains spooked with the Chinese market as it pulls back hard. After being down over 8% in 3 days, today’s volatility saw it trade up as high as 1.8% and down as low as 0.3% within a few hours. The budget outlook is expected to be more on slogans and less on solutions. The policies announced so far that supposed to deliver the fair concept seems to be dependent on failed policies from last year and unlikely to drive change. The falling Chinese market should speed up the stimulus plans of the government and support commodities. There are a number of major data points out of US in the next few days, Greece dancing with Euro and UK election will set the short term trend. (VIEW LINK)