Australian Shares

The recent run-up on tech stocks has some of the same ingredients as round one: Retail investors flush with US Treasury cheques.

Via FTAlphaville: Since the turn of the month, markets have been quiet.

I have to write this story every few years.

If you ask Goldman Sachs then rising yields will never hurt equities.

It is amusing to watch bottom-up analysts try to make sense of, and defend, Australia’s buy now, pay later bubble stocks.

Asian share markets are moving higher going into the Easter break with the firmer lead from Wall Street and some better than expected economic prints helping risk sentiment.

President Biden’s new big infrastructure plan didn’t shake up markets as expected with Wall Street absorbing the proposed tax increases while the USD finally gave up some ground against the major currencies after being super strong all week.

Asian share markets are pulling back despite very solid manufacturing PMI prints in China and the end of fiscal year window dressing in Japan.

The evidence continues to accumulate that once populations are vaccinated they rush back into travel.

It was a good time but not a long time for tearaway tech stock Afterpay and its various clones.

It was a case of repeated expectations overnight on share markets at least, with the mixed Asian lead not upsetting the continued rise in European markets while Wall Street stumbled yet again in the wake of new tax increases for Biden’s new big infrastructure plan.

Asian share markets are again quite mixed with Japanese stocks this time not moving while local shares pull back inline with the Brisbane (and greater QLD?) lockdowns, while Chinese shares surge.

Some more today on the US economic recovery, which is the leading indicator for the world as the vaccine glut approaches in H2.

Tech Wreck 2.0 is intensifying and is a long way from over.

Last night saw a pause in rising risk sentiment due to an absence of economic or other catalysts, although the freeing of the Ever Given ship in the Suez Canal should bode well for global trade.

Asian share markets have started the trading week in mixed fashion with today’s session seeing most markets pulling back and only Japanese stocks advancing.

Morgan Stanley on the amphetamine business cycle: A year ago this week, global equities bottomed as jobless claims spiked to all-time highs with the shutdown of the global economy as a result of the pandemic, and gloom started to set in.

Friday night saw risk sentiment firm once again going into the end quarter/month as the hastened pace of the vaccine rollout in the US embiggened economic efforts as the Fed gave US banks the go ahead to increase dividends.

The three great market narratives noted last week are still locked in a battle of wills. Good news is bad news is summarised by BofA: Weekly Flows:$45.6bn into cash (largest since Apr’20), $10.0bn into bonds, $4.1bn into equities (smallest since Dec’20), $0.6bn out of gold.

Risk sentiment came back overnight with both European and Wall Street bouncing back as volatility on bond markets pulled back slightly and the USD continued to lift on the back of strong initial jobless claims overnight.

Asian share markets are extremely mixed in today’s session with Japanese stocks rebounding while Chinese shares remain nearly unchanged in response to last night’s selloff in tech stocks on Wall Street.

A few more charts today on what happens when the population is vaccinated.

Last night witnessed a resumption in technology stock selling on Wall Street.