Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market delivered the sixth straight negative day in line with global overnight lead. We need to see bond market settle before the market feels confidence to jump in and buy equities. Value has definitely returned to the market with substantially good yield outlook. The key risk remains the bond market selloff raising bond yields. The central bankers have been able to keep rate down using multiple tools, but the bond market is now revolting against them. If the bond yields continue to recover, then cost of debt and risk of liquidity crunch will rise. We can’t see this remaining free of central bankers influence as currency wars are too far down the road. Over the weekend OPEC confirmed to keep the oversupply going while Iraq is expected to increase and Iran waiting to get into the game. Similar to Iron Ore after China/Brazil/Vale deal, we can’t see Oil averaging over US$70 in the next year. We wait and see what the market brings us…never a dull moment in the markets!!! (VIEW LINK)
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...