Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market gave up all of yesterday’s big bounce after running into a brick wall of worry with Grexit and Chiquities. Greece has been given till Thursday to come up with new plans and EU to decide if this ends in a Greek tragedy on Sunday. There is a very small chance now of a deal being struck while the odds for Grexit would move from 50% to nearly 75% after the overnight performance. Germany, France, EU and IMF must be already running the numbers over plan B. Chinese equities once again are defying Chinese leadership and continued the merry slide down with another 6% drop today despite some 50% of the market being suspended from trading. Australia has come back a lot more than other regions and our currency has also had a substantial pullback. The next few days are going to get rocky and you are likely to see some panic selling. In the medium to long term, we see ECB/IMF and PBOC will move to cover any substantial structural contagion risks. (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...