Sunset Strip | Aussie market finished flat with slightly positive global lead being negated by falling commodity prices

Mathan Somasundaram

Deep Data Analytics

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)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 30 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment