Sunset Strip > Trading Day Wrap From Blue Ocean 20170531

Mathan Somasundaram

Local market ran up on China data before fading to a slight positive day for the end of month. Tax loss selling in May/June will add to the seasonal weakness while geopolitical risks and US fiscal delays are overshadowing global growth story. We had strong manufacturing and non-manufacturing PMI data from China while Japanese Industrial Production was another solid data. Wages remain weak globally…Singapore was another casualty of historical weak wages growth. Big turnover day with QUB raising needed funding, MSCI changes and month end funk added to the usual tax loss selling traffic around this time of the year. Markets are completely ignoring the UK election risks…like Aussie elections recently, UK went to an early quick election to take advantage of a weaker opposition but now it looks like it will be closer than expected…no election is a dead rubber anymore!!! Market Outlook likely to remain volatile in the short term with macro risks while medium to long term view remains positive. Big macro week…(1) WEDNESDAY > CANADA GDP (2) THURSDAY > AUS Private Capex, AUS Retail Sales, CHINA Caxin Manufacturing, EU Markit Manufacturing, US ISM/Markit Manufacturing, US ADP Employment (3) FRIDAY > AUS New Home Sales, US Non-Farm Payrolls, US Trade Balance. The best performers were Property, Staples and Retail while Energy, Health Care and Miners were the worst performers..

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Mathan Somasundaram

Mathan Somasundaram

Market Portfolio Strategist, Blue Ocean Equities

2017 - Now > Blue Ocean (AUS) > Market Portfolio Strategist 2012 - 2017> Baillieu Holst (AUS) > Head of Strategy, Quant and Data Analytics 2009 - 2012 > Bell Potter / Southern Cross (AUS) > Head of Quant and Data Analytics 2007 - 2009 > LIM...

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