Local market fell on global sentiment and then made a slight recovery to close negative…that makes three negative days out of the last five…steam coming off the market as optimism fades. Gold, Health Care and Utilities were the best performers while Telcos, Banks and Energy were the worst performers. Solid ADP employment data in US flags non-farm payroll should be good tomorrow night. US Fed minutes flagged (1) rate hike data dependent (2) reducing balance sheet (3) equities look stretched…flipped the US market from positive to negative territory…there was never a rate hike in May, but June will be about string data vs balance sheet reduction. Yen climbing against USD…Japanese markets taking a belting like the Yen…looks like more to come as US fiscal policy fades. RBA and APRA talking tough on banks…more bark than bite…banks will put up rates to flatten growth and market will they fall with oversupply in a weak economy.


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