Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market broke the four day positive trend to deliver a negative day to finish the worst month since GFC. There are media articles saying that Chinese government has put together 100b Yuan to buy back shares on the market while arresting Citic employees on rumourtrage. This moves once again sent vibrations through the market with Shangbang hovering around -2% most of the afternoon. Central bankers are more than happy to roll out stimulus after stimulus as they are too far down the tunnel to go back. The problem with China is not that they are not growing; it is that they are running into the “Law of Diminishing Returns”. The bigger they get the slower the growth rate. There is always a high correlation with positive finishes in a positive month and negative finishes in a negative month when it’s the end of month or the end of quarter. In keeping with that tradition, we had a solid negative day to finish the worst monthly performance since GFC. (VIEW LINK)
11 topics