Aussie market started positive and then went on a rampant short covering run to deliver a strong positive finish after a weaker than expected unemployment data . The bounce was mainly driven by Oil recovery. Non OPEC players showing signs of working towards a deal with OPEC to first freeze supply and then look to stabilise and improve oil price. There were clear optimistic views that we may have seen the bottom in oil and that drove substantial short covering rally. Bears were running for cover and bulls were not taking prisoners. US Fed further added to the fire with their minutes showing that they have gone soft on rate cycle due to global risk. PBOC, BOJ and ECB are knee deep in stimulus and that does not look like ending anytime soon. Budget update given yesterday basically showed the government was going to do nothing and hope to get elected due to the low popularity of the opposition leader. They misread the economy and the job data showed they were living in fool’s paradise..…. (VIEW LINK)
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