Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market shot up to confirm the Christmas rally is up and running with positive hosing reporting data from US, ECB pulling out more QE, big banks putting up rates to support their dividend policy and M&A in Energy sector continues. Shock and horror…NAB and ANZ followed WBC and CBA to put up rates. Bubble or not, everyone agrees that the property market will have a correction when the rates go up. Well….the rates are going up and over supply is coming in 2017. We maintain our view from May 2014 that domestic housing bubble will burst in 2015H2/2016H1 period. ECB overnight came out and confirmed that more QE is on the way and that is no real surprise. China growth plan out next week and that should again be another glorified currency war like ECB. Christmas rally started last week and there were clear signs of FOMO today with volumes picking up!!! (VIEW LINK)