Sunset Strip > Trading Day Wrap From Blue Ocean 20170509

Local market fell on the open on weaker commodities before recovering and then running into bank tax rumours taking it down again. Commodities remain weak…China hasn’t turned the corner…value has returned to the sector but the momentum remains weak.      Banks have moved from reporting to ex div period…not much growth…potential budget tax surprise gave the market a reason to bash them. Banks are stretched on valuation in a low growth outlook while the government budget rumors and falling currency may be the catalysts for rebasing. AUDUSD sliding lower on commodities and weak budget outlook…global investors will be forced to reduce Australian exposure…Banks will see more selling pressure!!!

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