Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market followed the global markets up again with short covering providing the extra boost. The two main sectors in banks and resources are running hard. Banks were very cheap and the GDP data turned the sentiment from recession worry to bargain hunting and yield chase. Trade deficit data that came out today further supported the view that Australia is not “The Big Short”. CBA moved with the herd to push up interest rates on business lending and show how they can protect their margins. We are cautious on the commodity bounce as we have not really seen any supply side change to maintain the big run up. The last time market had four straight days of positive return was in late December and we all know what happened in January. The market is now sitting on 100 day MA while the volatility index is below 200 day MA….both of these have not been sustainable in the last 12mths............…. (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...