Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market continued the positive momentum for the 6th day in a row despite substantial pullback in other resource countries like Canada and Brazil over the past few days. The market looks like running out of steam, but the yield thematic continues to drive it higher. With reporting season approaching, we expect to see some profit taking at the back end of this week. Banks pushed the market higher despite Resources under selling pressure. RBA tried to jawbone sentiment higher, but the argument looks a bit thin. Then seem to be confident about the employment market and don’t see a huge contagion effect from Greece while they remain vigilant of Greece and remain negative bias. The market is unlikely to get carried away as the state and federal governments take the easy path by pushing up GST rather than doing a proper tax reform and close up tax haven loopholes that are mainly benefitting the vested interest groups. There are a lot of US and domestic macro out this week with US reporting season…Stay nimble!!! (VIEW LINK)