Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market maintained the negative trend with property bubble and US reporting season risk. China trade data was mixed while numbers of houses are now on the domestic property bubble bursting band wagon. The usual market cycle of running up into US reporting season is then followed by profit taking on growth worries which then sets up the market for the Christmas rally into Dec before US Fed takes center stage again. We maintain our view from May 2014 that domestic housing bubble will burst in 2015H2/2016H1 period. Short term risk in bank dividends, housing bubble and US reporting season is likely to weigh on the market this week. The big stock news today were from GBT market update delivered a downgrade and stock down over 20% while ISU announced a potential bid with CEO change. IFL is being put up as the bidder for HUB24 while M&A remains a big theme globally. (VIEW LINK)