Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market popped up on the open with hope of Greece solution and then moved further up with solid business sentiment data. Grexit risk is now a non-event. For the global markets, the key worry was that any deal doen for Greece has to be matched for the rest of the austerity gang. The fact that Greece played chicken with EU and eventually folded will work in EU’s favour. Greece has set the scene for the rest of the austerity gang to play by EU rules or go it alone. As we have always believed that politicians will fold for the easier solution at the end. Chiquities are far from resolved, but they are stabilised. We are looking at number of months of cleaning and releasing from suspension for some 70% of the market. We should get a bit more colour on how China is traveling with GDP growth data for Q2 tomorrow. Logic suggests that it should be at best meet expectations or slightly below. (VIEW LINK)