Greece Faces Euro Exit - Sunday... | Gold Falls $15/oz... | AUD Under Pressure... $0.72 Next Target |

Good morning, So our Greek “friends” have avoided default (for now), but have until Sunday to come up with a solution… Otherwise… They’re out… Did the Aussie market care yesterday? No… XJO up 106 points… The previous day however, we were down ~100 points during early trade… In overnight trade, Dow Jones was down 200 points and then rebounded 300 points….. The current “volatility” in markets is enormous… Goldman Sachs has this morning come out saying that “Chinese stocks have 27% to run” … we certainly hope so, as Chinese authorities have now not only suspended IPOs but also trading in their own shares… We have been stating for the past month that at 44x P/E, Chinese stocks are very expensive… even with the current ~ 30% fall in the index, they are still expensive… The AUD is under pressure and we see downside risk to $0.70-$0.72 as Chinese growth stalls and commodities remain under pressure … (We did note this in our Bloomberg interview last week) The SPI is pointing to a 12 point fall this morning