Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market jumped up on the weak US job data removing rate rise risk and then gave up some of the gains through the day. US Fed Chair only flagged a rate rise in June/July last week and one negative employment data point should not change the economic picture dramatically as unemployment is now below 5%. US Fed Chair’s speech tonight will be critical. The question on the market pundit’s mind….will the Fed crumble or will it keep moving on rates? history shows they will go “violet crumble”…but for the sake of the global economies, we hope they do move on rates. The RBA meeting tomorrow is a sideshow as they are unlikely to waste another cut till the next inflation data comes out in July. Markets are beginning to pay attention to Brexit worry as the polls start to move in favour of Brexit. Bond Yields just reached historical lows…just below 2.15%...risk is high…no need to be brave!!! (VIEW LINK)


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