Aussie market started flat and trended down before getting hit by domestic growth scare with current account deficit blowing out and global growth scare with China PMI falling again. China continues to support their equity market while putting restriction on speculation trading on Yuan. The market remains spooked with Chinese leadership unpredictable moves. Investors took money out of the market with banks at the top of the sell list as US and Euro markets are likely to trade negative on further China worries while our market is likely to face a dismal growth number tomorrow when you put the current account deficit into context. US manufacturing data tonight will most likely further support the US rate rise, but we don’t think they will move till the end of Q4 at best. RBA left the rates unchanged as expected given that they are a sideshow the the main global game being played out by PBOC and US Fed. Australia is going through a sleepwalk to low growth abyss with no growth plan. (VIEW LINK)
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