Sunset Strip > Trading Day Wrap From Blue Ocean 20170801

Mathan Somasundaram

Local market climbed out of US weak sentiment to deliver a positive day on the back of better commodities and China data. US data out tonight will deliver more clarity on the US Fed outlook while underwhelming US reporting season needs to maintain the pace to support the market multiples. The best performing sectors were Utilities, Energy and Gold while the worst performers were IT, Retail and Health Care. Consensus bet is for AUDUSD to go down. We think the risk is that AUDUSD heads up to 87-94 trading range. We remain negative short term on the industrial global businesses…Health Care leads the pack. Rising commodities and weak USD outlook in the short term supports higher AUDUSD. On the sector/stock front….(1) DRM ran on spot gold bounce and update on Da Vinci Discovery (2) DCN bounces on gold price and value (3) WHC popped on coal price bounce (4) CCP had another solid result (5) SSM back in favour as investors chase service stocks with growth (6) RIC leading the food thematic (7) TWE confirmed guidance and pushed up the price after a broker scare story (8) ISD downgrade cycle continues and stock was smashed (9) NVT result underwhelmed the market.

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Mathan Somasundaram

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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