Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started positive with better commodity and global market sentiment before budget update draining the market of optimism. We have now had 13 out of the last 16 days being negative. Commodities took a breather for a change and the domestic budget delivered the negative news. The budget has falling revenues and rising expenditures. The government has completely given up even trying to solve the problem and resorted to setting up an election budget update. There was a clinical ignorance of what the economy has been put through over the past two years while the lack of reform or any solutions shows the shallow nature of politics. The CFO just delivered a no solution market update with falling revenue, high debt, downgrade in growth and an outlook statement “heading in the right direction”. The logic suggests that this was an election budget update. Notable moves up were from CNU on the new pricing set up in NZ and GXL running on media coverage on potential buyer. (VIEW LINK)