Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market had a very negative day with US rate hike risk, falling currency, falling commodities and bank bad debt worries. Falling commodities, falling currency and US rate hike were the initial negatives, but the bears were running amuck as ANZ and WBC unleashed bad debt worries. We have been expecting a selloff and banks had to take the hit for the index to go down. Commodities were always going to come back with currency as they were more reliant on weaker USD than fundamental change in supply/demand. The banks are showing the real economy is slowing despite dodgy employment data. Discretionary retailers are going to struggle and property bubble is already leaking. RBA will cut rates as we expect and the banks will absorb most of the cuts. Now it’s time to stand on the side and watch FOLO (i.e. Fear Of Losing Out) set in after recent recovery. Unless we have some dramatically weak US data, we should see negative sentiment well into next week. (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
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...
Please sign in to comment on this wire.