Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market opened negative with US markets before the Chiquities debacle made the global investors take down the Aussie market as the whipping boy for China. The day started with US markets falling over on weaker than expected growth outlook as the positiveness from lower cost of borrowings and oil prices were more than counted by the negativeness from slower global demand, stronger dollar and lower capex. World Bank downgraded global growth with emerging market as the main catalyst. The devaluation of Yuan, lockout period of bailout funds ending tomorrow and the liquidation mandate of Chinese funds meant that the market opened down 5% and triggered the 15min sinbin. The sinbin step just aggregated more selling pressure and the inevitable 7% drop was reached and the market was shut down. Our market is back at fair value with no premium for the substantial yield premium but momentum is king and no need to be a hero when there is blood everywhere. As we wrote last week, “GREED IS GOOD, BUT PROFIT IS BETTER”. Notable moves today were... (VIEW LINK)