Aussie market started negative and then recovered with better bank sentiment. The bank reporting season entered stage 2 with NAB and BEN reporting today. CBA is stuck to capital requirement like politicians to a helicopter. The result update on Wednesday should shed some light and the bets are still for a capital raise. Finance minister minced his words, but our growth outlook downgrades in December are as certain as submarines going to Japan. The Shanghai composite is up 5% today and the volatility keeps on keeping on in China. PBOC will have to move on more stimulus sooner or later given the growth rate outlook is unlikely to remain at 7% with the recent sets of data. The recent pullback has started to get us back to value territory with more upside risk than downside risk, but the reporting season volatility means that we are likely to tread water till we get past the banking stock updates…stuck between Value territory of 5500 and recent highs of 5700…stay nimble!!! (VIEW LINK)