Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market was held up better than expected due to Banks maintaining yesterday’s recovery and Mr Buff’s Berkshire Hathaway buying into IAG. The risk remains with Greece negotiations and US Fed meeting on global level. Chinese markets at the worst today were down over 6% in 2 days and the index breaking technical support level. It looks like the momentum is turning and leverage run up will speed up the profit taking as well. We were surprised to see the selling pressure on gold equities yesterday given the risk in the global markets and it seems that the trade is reversed today. The bond market showing some form of stability despite the macro worries. Banks held the market from falling again while gold sector saw buying with global macro risks rising. AMM and VOC merger saw them bounce today and there is more to come. IAG and Buffet deal shows that there is value in Australian financials and over time we expect global investors to continue to buy more. (VIEW LINK)