Mathan Somasundaram

Aussie market was up and down with lack of direction and ended flat. US Fed and RBA on the sidelines will put ECB in focus when Super Mario speaks tomorrow night given the Brexit vote is in play. RBA is stuck between asset bubbles, weak US Fed, irrelevant fiscal policy and slowing global growth. World Bank downgraded global growth again….just wait for IMF….they are usually about 3mth behind reality. Currency war is back and the rest will respond to US Fed move. PBOC is turning the tap to over consume commodities and over supply products to keep the unemployment in check as growth slows. China can’t keep doing this for too long and US will see inflation later in the year. Markets are beginning to pay attention to Brexit worry as the polls start to move in favour of Brexit. ECB speech tomorrow night, US Fed meeting mid June, ABS employment update mid June, Brexit vote late June and Federal Election in early July are the main catalysts for the next few weeks. (VIEW LINK)


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