Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started positive and then ran out of puff before BOJ’s negative interest rates announcement pushed it into the positive territory. The Japanese markets moved from negative 0.5% to positive 3% and then fell back down to negative 1.5% before moving up positive 2%. If you bought and sold each low and high today, Japanese markets delivered over 11% today. The main game being played by the Central Banks since GFC is “Currency War”. As we wrote at the end of December, Jan was setting up as a profit taking month while Feb was likely to be the time for the market recovery …we moved to a trading buy market call at the end of last week as the stimulus hope starts to support market uncertainties. We expect our market to trade up with the currency in the short term. We maintain our call on profit taking on Gold equities while Energy equities are likely to see short covering on stimulus. (VIEW LINK)
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