Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market opened positive and then fell apart before recovering during the back half of the day to finish a slight positive with global market sentiment. Market really had no catalyst and was treading water into the weekend. US Fed backflip, Brexit worry for ECB, clueless BOJ and “dumb and dumber” domestic election cycle remains as an overhang while we have a small relief rally to break six straight negative days. The market finished this short week after delivering hat trick of negative weekly performances. ECB talks tonight but they are at the mercy of the Brexit vote. The markets are likely to remain weak in June till Brexit is out of the way. As the market pulls back, buy into the market while everyone else is cautious!!! Market is already below 50 day MA…likely to pullback below 100 and 200 day MA in the next week….buy territory near 5000 for now!!! Spot gold moving up and bond yields moving down…risk is high and market is cautious….time to wait and react. (VIEW LINK)


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