Mathan Somasundaram

Aussie market started positive and went further north due to Resources optimism driven by China data, Oil optimism driven by potential Doha deal and the Financial optimism driven by US result season. After three consecutive negative weeks, we expected a bounce this week in like with the trend from the last 12months of never delivering four consecutive weeks of negative return. China data had been stronger than expected in Q1 and the trade data further backed it. On the local front the unemployment data surprised the market at 5.7% with another bounce on part time jobs while losing full time jobs.There is still substantial risk in the US market reporting season as growth outlook remains weak while the market is trading slight discount to all-time highs. Commodity risk remains high with Oil the big risk in the next week as Doha meeting expected to deliver a deal on Sunday. Time to be patient and pick the time to buy-in or add more exposure…maintain medium to long term view > long Yield and Gold, short Iron Ore and Oil!!! (VIEW LINK)



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