Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market went positive and really squeezed the shorts to cover and ramp up a big positive day. Greece is making all the right moves to get a deal done after the referendum, but we have all seen this before and global markets will not move much till they see an actual deal. 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 allow everyone to claim that they delivered. Chinese equities continued their merry way down despite government supposedly looking to allow property to be used as collateral to borrow for buying shares and also some quarter of the market being suspended from trading. Big policy changes are coming fast and random with potential to create even bigger future issues with every solution. RBA delivered nothing new as expected and we see RBA maintaining this stance till US Fed moves in Sep. (VIEW LINK)