Mathan Somasundaram

Aussie market fell on the open with global market sentiment, weak oil and bank sector worries after WBC update. The market was pulled down by Banks and TLS while IT and retail were the best on the positive end. Local market seems to have broken the uptrend after pulling back from the 5600 level. We see a downside risk of 300 points or 5% on technical levels. History looks to be repeating as the first few banks (i.e. BEN and ANZ) already priced in the positive news for the sector and the update from the rest runs into “buy the rumour, sell the fact”. The global markets are gradually moving through an August pullback and we see similar potential in the local market. The jobless claim update in the US tonight will be another catalyst to judge US Fed movements and the flow on effects on USD...…. (VIEW LINK)


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