Sunset Strip | Aussie market recovered from the early sell off on global sentiment and Chinese property worries to close flat

Sunset Strip | Aussie market recovered from the early sell off on global sentiment and Chinese property worries to close flat. The whole world now on holding pattern to see what happens in the US. Turnover was just above $6.2billion. The equity market is stretched on all valuation metrics, but the central bank action to maintain historical low interest rates are forcing the market to trade at a premium due to the yield differential. The markets are expecting US fed to remove the word patience and add either monitoring data or flexibility while giving some clarity on the rate rise around June. The up and down volatility in US market shows there is risk in the market with US Fed move coming. It makes sense for US Fed to take advantage of the market outlook and set the time table for rate rise. Our market is heavily weighted towards financials and their valuations are based on the yield gap. (VIEW LINK)