Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market opened up unconvincingly on low volume before weak China data drove global investors to sell on currency worry. The market is likely to trade sideways to down over the next few weeks before strong profit taking pressure brings it back as the US and domestic reporting season worries take hold. Local retail investors are pushing up small caps on bargain hunting while the global investors are selling large caps to reduce exposure due to currency worries. The China data will hurt commodity prices while Saudi Arabia and Iran standoff has the potential to spike oil prices in the short term despite the long term dynamics remaining bearish. Property prices are coming off the top and the banks are squeezing the sector lower. Chinese market is down 7% and Japanese market is down 3% today. US and Euro markets are likely to be negative on China and Middle East worries tonight. As we wrote last week, “GREED IS GOOD, BUT PROFIT IS BETTER”. Notable moves today were… (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...