Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market was hammered again as winter selling season hits the market with third straight negative day. We have not seen three consecutive negative days since late March. Local eco data out today…trade data was better than expected while retail sales were below expectations. Trade data was expected to be good after GDP while retail sales continues to show that low unemployment data is masking under employment. We continue to see consumer spending pulling back in H2 and remain negative on retail and consumer exposure that is completely local facing. US ADP Payroll tonight will be another signal on the US rate cycle. Markets not paying any attention to Brexit vote and it’s getting closer than most think. The markets likely to remain weak till Brexit vote in late June….but get ready to jump on preferred stocks when they hit your target!!! US market remains in a precarious position and they have a tendency to fall after locking in the month end performance….June has started negative on a global basis!!! (VIEW LINK)