Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market aimlessly went down suffering from international cold and domestic flu. Chinese leadership was out in force reiterating the positive of their economy and expectations of stabilisation to come through. The better than expected inflation data and more stable Shangbang supported that view. Japan is once again showing signs of weakness and we are not far from more stimulus to keep the show going. Australia is sleepwalking into a stagflation that could be avoided. Markets are treading water waiting for US Fed call on US interest rates. We still remain that it will be pushed back to Nov/Dec with China slowdown and Euro refugee crisis. Small caps outperformed large caps today as market sees better growth in the small industrials. New economy continues to outperform the old economy with IT sector leading the pack. (VIEW LINK)