Australian Shares

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Macro Afternoon

by Chris Becker Asian markets remain very cautious, unable to translate new record highs on US stock markets to further advances domestically. Currencies are little changed with the USD remaining steady against most majors after last nights falls while commodities are mixed as iron ore falls and oil wants to lift higher after being steady

13

Who wins from penalty rate cuts?

From Morgan Stanley: Today the Fair Work Commission announced cuts to Sunday and Public Holiday wage rates. We see this a positive development for retailers given Sunday is increasing in importance as a trading day. Our analysis shows a theoretical boost to FY18 EBIT of 4-12% for retailers under our coverage. Sunday is big: We

23

Macro Afternoon

by Chris Becker Asian stocks are not having a good day in response to the mixed overnight lead absorbing the FOMC minutes fallout. Aussie 10 year yields were firmly bid higher as was the Aussie dollar itself in response to the capex print, while metals and other commodities slid back. The Shanghai Composite is losing ground

20

Macro Afternoon

by Chris Becker A great lead from overnight markets generally turned the risk taps on here in Asia today, but the Yen strengthened against USD providing a headwind for Japanese stocks. Commodities were generally higher with the WTI oil price again dicing with the $54USD per barrel level as we head into another week of

9

Market applauds Domainfax’s evil plan

Iron ore futures are flat after overnight falls suggesting a decent hit tomorrow but holding on despite Chinese house prices and sagging coking coal futures. The miners are down: Big Gas is weak despite strong oil. OSH is flying on a Goldman upgrade: Big Gold appears headed for a correction: The Big Debt bull is still

15

Macro Afternoon

by Chris Becker A strengthening USD is the main highlight during a muted session in Asia today, with the release of the RBA minutes locally the only major catalyst on the calendar. Commodities were generally higher with iron ore up nearly 4%, gold slipping slightly while oil still wants to break free as the WTI

8

Fortescue blasts to new highs

The Big Iron rocket is punching skywards again today as Dalian adds another 1% to overnight gains: FMG is powering towards its highest intraday price since the GFC and will presumably break the closing price today: A technician would suggest an $8 target then on to the all time high. Macquarie has more on what could

0

Macro Morning

By Chris Becker  The BTFD rally had a pause overnight as US markets were closed for the President’s day holiday and the economic calendar was relatively empty providing no catalysts. The focus was solely on Europe particularly with the failed Heinz takeover bid on Unilever which dragged stocks while bonds were largely unchanged. Looking at

7

Macro Afternoon

by Chris Becker Asian stocks have had a mixed start to the week following a similar positive, but mixed lead from overnight markets on Friday. The Yen weakened helping domestic Japanese shares while Chinese bourses are the most positive moving on nothing as usual! The Shanghai Composite is up over 1% after the lunch break to

8

Big Iron up as China boosts coking coal

Big Iron is firm today as China has announced the suspension of coking coal imports from North Korea. Not a trivial amount of 22mt. Dalian is 1.5% and coking futures a bit more. Of the majors only FMG is up, however, for no obvious reason: Big Gas likewise is looking a bit toppy: Big Gold

30

Macro Afternoon

by Chris Becker Asian stocks sold off today to finish the week unsettled. There’s still no news on Trumps new tax plan and confidence is waning in general at his administration’s inability to push anything but stock markets higher. The Shanghai Composite is down a little over 0.5% after the lunch break to be at 3212

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Macro Afternoon

by Chris Becker Press that buy button as hard as you can is the clear signal out there as risk takers continue to gobble up stocks across the Asian region, dumping bonds along the way. This has been in response to another overnight record high in US stocks, plus the Chinese credit data surprising on

10

Macro Afternoon

by Chris Becker The sudden resignation of US National Security Advisor Michael Flynn has pushed the USD down, combined with the higher than expected Chinese CPI print with Asian markets slipping as confidence faltered over the dual macro impact. Locally the surprisingly good NAB business conditions survey combined with the lower USD sent the Aussie

9

Macro Afternoon

by Chris Becker Asian markets absorbed the weekend like it never happened, extending Friday’s risk rally with green across the board in stocks as Yen pulled back, iron ore exploded higher, dragging other commodities with it. Bonds were sold off mildly while the Aussie dollar remained firm against the USD as the commodity proxy. The Shanghai