Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market started negative and gave up more as expected due to investors reducing risk into the weekend. The market is beginning to accept the China devaluation more than understand the justification. We do expect this to continue and devaluation to reach over 10% in the next few months as US Fed moves up the interest rates. Logic suggests that they are not trying to push everyone into deflation, but rather support domestic manufacturing remain competitive. This will remain negative for commodity countries and their currency. Regular readers would know that we have been saying this move was inevitable for the past few weeks and we remain of the view that there is more to come. We maintain our positive long term view on the yield trade (i.e. banks, div financials and telcos) while health care looks the best growth/currency story. We continue to like the gold sector on margin/safety aspects with recovering spot gold and falling currency. (VIEW LINK)

Mathan Somasundaram
Founder & CEO
Deep Data Analytics

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment