Aussie market started positive on global sentiment and remained there as the end of month and quarter rolled over. Aussie market is trading on synch with US market after US Fed moved to water down rate rise cycle and deflate the USD. US corporates are not seeing better growth outlook while global macro points to more downgrades. We see substantial risk of US market moving into profit taking mode and dragging Aussie market down in the first half of April. There are about $13b worth of dividends to flow into accounts in this week and next week. Investors will wait for the market to pullback and buy into the yield thematic. Aussie market is not cheap without growth upgrades or rate cuts. We are unlikely to see that in the next month and any weakness in US markets will drive our market back to the recent lows. The markets are showing too much calm….get ready for some storm after the end of month!!! (VIEW LINK)
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