Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market held up better than expected due to banks given the global macro worries such as Greece exit from EU and US Fed putting up rates. The bond market showing some form of stability despite the macro worries. The argument being thrown around is that most of the Greek debt is in the Greek banks and EU QE will clean that out in case of emergency or Grexit. We still remain of the view that both Greece and EU will come up with a rolling medium term agreements to keep kicking the can down the road and the latest media coverage seems to support that. We still remain very negative on the domestic economy, employment outlook and property prices. Banks held the market from falling further while gold sector saw selling on potential US rate rise hope. AMM and VOC merger got the go ahead despite TPM efforts and Burson bought the auto division from Metcash. It’s a waiting game to see what happens in Greece tonight and then US Fed comments on Thursday morning. (VIEW LINK)