Chris Becker

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Links 21 August 2017

Global Macro / Markets / Investing: US stock valuations have been inflated by The Fed – FT (in other news, water is wet) US exports gas to Europe and Russia aims to counter – WSJ Americas: Ousted Bannon promises to turn fire on White House – FT President Maduro strips Venezuelan parliament of power –

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Macro Afternoon

by Chris Becker Definitely risk off here in Asia today to finish the week on a low as stocks follow the poor overnight lead coming from the Spanish terrorist attack and the derailed Trump administration. Safe havens are the destination for hot money with gold, Yen and bonds rising. In mainland China the Shanghai Composite

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Macro Afternoon

by Chris Becker A very mixed day in Asia after what looked like a good lead overnight from risk markets, with response to the dovish Fed minutes muted by resumed Korean tensions and a burgeoning Yen. Stocks were down across most of the region. Commodities were the highlight with oil rebounded a little, while industrial

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Macro Afternoon

by Chris Becker Following last night’s tepid lead from overnight markets Asian traders are looking at each other and wondering if they should continue on with the bounce from Monday, given the seemingly reduced risk over the Korean peninsula. Stock markets were mixed with only the ASX200 putting on meaningful gains with currencies relatively stable

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Macro Afternoon

by Chris Becker The bounce continues across Asia with green across the board for stock markets as the USD rallies on the back of renewed vigor for interest rate rises. The Korean situation has eased in terms of tension, giving markets respite as they follow the great start to the week from transatlantic markets overnight.

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Macro Afternoon

by Chris Becker Its bounceback day here in Asia as no news about North Korea is good news, with Friday’s night slight return to risk helped today with positive Chinese economic prints. Although the industrial production number disappointing, the mood has been positive, with Yen also weakening slightly alongside gold as Aussie dollar came back

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Macro Morning (Trading Week)

By Chris Becker  Volatility returns with a vengeance as tensions on the Korean peninsula spillover to risk markets, even when the economic and stock fundamentals seem sound. The problem with too low volatility is it begets a higher burst when it breaks and that’s where correlated stock markets find themselves presently. As usual for Monday

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Macro Afternoon

by Chris Becker Another sea of red across Asian stock markets today as tensions overflow between Pyongyang and Mar-a-lago. The massive lift in volatility on US stocks overnight translated into falls everywhere, particularly local markets which broke significant support. A mixed mood on USD though, with the Yen finding buyers on the safe haven while commodity

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Stocks, dollar down on “joined at the hip” Turnbull

by Chris Becker PM Malcolm Turnbull is ready to send other Australian parents sons and daughters into war against North Korea alongside US forces, eschewing the usual diplomatic language by stating the bloody obvious. From ABC: “America stands by its allies, including Australia of course, and we stand by the United States,” Mr Turnbull told

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Dalio: gold’s time as insurance is now

by Chris Becker Gold isn’t money or currency. Its main use is as jewellery. Because its shiny. Shiny things sell. Outside vanity, its real utility is in specialist industrial applications particularly electronics, but also optics and space based applications. But that ignores its historical “value” whereby like a lot of other institutions, its worth is

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Macro Afternoon

by Chris Becker Another day of unease across Asia with the Korean troubles still affecting risk markets, with the Yen bid higher, the Korean Won sold off and stocks retreating across the board. In mainland China the Shanghai Composite is off nearly half a percent recovering a sharp selloff just before lunch to be at  3261

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Distraction politics via emoji

by Chris Becker This is a live Facebook reaction to PM Can-do-nothing Turnbull explaining why he’s wasting $120 million on a non-binding postal vote to decide marriage rights. Like those who discount Trump’s errant Tweets about Transgender personnel in the US military, this is not a “stupid” or “misguided” adventure by the Coalition. It’s distraction

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North Korea’s hollow threat

by Chris Becker Death. Destruction. Nuclear holocaust! These headlines sell papers and bait clicks. Add to the mix a man-child US president, plus any chance to talk up defence contracts and the military-media-industrial complex goes into a frenzy. Doom sells! Luckily, science comes to the rescue. Let’s dispel the “threat” from North Korea using some

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Waiting for OPEC

by Chris Becker The two day OPEC meeting has come and gone with nary an impact on the oil price with the WTI contract remaining relatively stable overnight just below $50USD per barrel and Brent crude steady just above $52 per barrel. Oil has been stable for over a week after a bear market rally that saw

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Macro Afternoon

by Chris Becker The Korean troubles are turning the risk mood straight off in Asia with the Yen appreciating against everything on the safe haven bid. Stocks are down across the region, save Australia, while bonds were bid alongside gold. In mainland China the Shanghai Composite has closed down 10 points or 0.3% lower to 3271 points