Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market got hammered at the open after the Greece vote and then recovered slightly as Chinese equities started to show some stability. The recent news out of Grexit is that the Finance minister has walked to allow the next stage of negotiations. We still remain of the view that the global politics, self-interest and the general in-ability to deal with hard long term structural issues will see Greece, EU and IMF deliver a miraculous predictable deal that will let everyone will claim that they delivered. Chinese equities were in free fall and the government has stepped into support the market with the latest news suggesting that the state pension fund has told its fund managers to stop selling Chinese shares. The margin loans in the markets is astounding and falling markets will only make it worse. The government was forced to move before it became an even bigger mess. The sentiment for China related stocks and resources are not going to be positive in the near future when the country is struggling with property and equity bubble. (VIEW LINK)