Sunset Strip | Aussie market finished flat with slightly positive global lead being negated by falling commodity prices
Sunset Strip | Aussie market finished flat with slightly positive global lead being negated by falling commodity prices. Turnover was just below $4.9billion. As we expected China has started the multi-year downgrade of the GDP growth outlook down to 5-6% in 2-3 years. India also moved to cut rates with slowing growth. We still need to get more colour on US Fed's intention on rate rise and that may become more clear after tonight's US data. As we suggested from start of this year, RBA should sit tight and see what happens with China, Commodity prices and US Fed. The market is beginning to think about not getting a rate cut for a few months. Will the market multiples be supported if that happens? The yield differential and valuation multiples suggest that we will see profit taking. The big positive performances were stock specific with BNO popping 11% on US marketing while DNA and ACR rebounded from recent selloff. The big negative moves dominated by index changes and ex div while RRL was slammed 27% on production downgrade. (VIEW LINK)
4 topics