Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market Turn-bear for Malcolm Turn-bull’s first day in charge. The big picture globally still remains on tender hooks as far as what the US Fed interest rate cycle will deliver. Markets are expecting that the benign inflation, failing global growth and China slowdown will force US Fed to push back any rate change. If we do get a change, the Emerging Markets will get smocked and the flow on effects will hurt Australia as a commodity country. Chinese leadership are actively looking at options to stimulate their economy.Domestic politics fell back from comedy show about “lost in space” to action packed “hunger games: killing season 2”. Coalition has managed to backflip on the one thing that they got elected on…they won’t get rid of a first term elected PM like Labor. The risk is that as with previous government, these political last minute changes are about survival and very rarely about the country. Hence the global investors were once again hitting the exit button. (VIEW LINK)