Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market popped on the open with banks leading the charge on the hope of higher interest rates and then gave some of the gains through the day. The US job data on Friday raised hope of higher interest rates in US and that helped to push up financials. Despite the solid job market the economic data remains patchy and US Fed has been consistent in walking away from rate rise in patchy growth. We do not see a move by US Fed in Sep and that may be another meeting where US Fed will look to water down USD as it starts to hurt growth again. BEN result keeps pressure on the Banks and CBA on Wednesday will be important to set the tone for the market short term. The market direction will follow the banks in this reporting season as the rest of the sectors are priced at high multiples. (VIEW LINK)