Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market had a big bounce from the fair value level (i.e. 5000) in line with global positive sentiment overnight. China got the IMF internal tick to join the global currency war…wait, they already have done that….sorry, they now are expected to join the global reserve currency status. Only a brave man was expecting IMF to say no forever. Once China has this status, we expect that they will allow their currency to devaluate with the slowing economy. US Fed will find it hard not to raise rates in December with all the data pointing to rate hike. But the US corporates are pumped up on debt and they will feel the pain of higher interest costs and stronger currency. Hence we do think US Fed will set a very slow path to interest rate normalisation. RBA basically came out and ruled out any rate cut due to rising inflation till the economy falls apart. The 4 big banks and the 4 big most-hated stocks (i.e. WOW, TLS, BHP and STO) all had a good day. (VIEW LINK)
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...