Local market recovered from early losses to finish flat on continued commodity optimism. Shanghai index making a big move higher today….positive China sentiment. Base metals are on fire while Iron Ore and Oil continues to prove bears wrong. Copper leading the charge and we see MLX and MOD as the best exposures with different risk levels. S32 remains a key diversified exposure for base metals after the solid result. Keep an eye on WSA (shorts 20%), IGO (shorts 15%) and AWC (shorts 5%)…likely to see more upside on short covering. The markets had to digest more weaker US housing data and US political turmoil. US Fed and ECB comments tonight from Jackson Hole unlikely to rock the boat. We continue to see balance sheet action 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 commodities the main positive catalyst and US market, local reporting season and geopolitical risk remaining as the negative catalysts. We see good buying opportunity opening up over the next month as investors over react to negative sentiment…stay nimble through reporting season!!!
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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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