Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market maintained the positive momentum into the month end despite flat commodity prices and flat lead from US. The correlation of stocks performing well into the month end generally leads to profit taking early next month as we are stuck in a range trade as we wait for the reporting season. We have reached this top now for the third time in two months and he confidence is not high that we will keep the momentum next week. Chiquities watch today shows that Shanghai is down 1.4% and spot gold is down US$6. It is almost like there is gold selling to support equities, but that may be just coincidental. Grexit is back in the media as IMF wants assurances on debt from Greece. This is like asking Stevie Wonder for direction. Greece has assured more times than the Aussie cricket score in the third test, but it has meant nothing up to now. We don’t think this will matter for markets, but if you need a reason sell stocks, there is always Greece. (VIEW LINK)