Sunset Strip > Trading Day Wrap From Blue Ocean 20170828

Mathan Somasundaram
Mathan Somasundaram Blue Ocean Equities

Local market fell on the open and then traded sideways with weak global sentiment. The commodities remain strong on the back of China optimism…Shanghai index delivered another new high since 2015. Iron Ore continues to baffle analyst by moving higher while the Texas natural disaster playing into Oil optimism. Jackson Hole did not deliver much as far as outlook statements but both chiefs were dovish on overall sentiment and were not positive on deregulation of the financial sector. We continue to see balance sheet reduction in Sep followed by rate hike in Dec with 2018 hikes to get watered down. Global central bank mantra remains dovish with weak inflation and low wages growth despite corporate profit growth cycle. Local markets are still stuck trading in a narrow trading band with stable China, improving Emerging Markets and commodities the main positive catalysts while US market worries, local reporting season and geopolitical risk remaining as the negative catalysts. The local reporting season has been batting below average with more pain than gain. The winners are mainly linked to the resource sectors while the losers are mainly in the industrial sectors. Local reporting cycle hits the last week…starting the week with weak global sentiment with not much macro till the back end of the week…stay nimble!!!

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Bre Wolf

Hi please can your daily Sunset Daily Trading Wrap PDF be formatted with more paragraphs in-between sentences and less bold text as its is so hard to read in its current format. Thanks

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