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 –
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
By Chris Becker Markets ran for safe havens overnight in the wake of an awful terrorist attack in Spain and the realisation that yes, the US president is nuts and he’s not going anywhere or will get anything substantive done by a now impotent Republican Congress. And this is before Mueller’s investigation really gets
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
By Chris Becker Coo coo catchoo. The Fed goes somewhat dovish in its latest meeting minutes, complaining about low inflation, sending the USD down sharply from its recent little high and supporting stock markets on both sides of the Atlantic. An upside surprise to the EZ GDP print helped as well. Commodities were mixed
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
By Chris Becker The USD led the charge overnight as advanced retail sales surprised to the upside, sending bond yields higher on even firmer expectations of another rate hike from the Federal Reserve before the year is out. Stocks were relatively flat in the US as a result, while European bourses advanced on good
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.
By Chris Becker Volatility deflates overnight as worries over Korea abated, sending stocks higher as safe havens like Yen and gold were dumped. Meanwhile, the USD returned to strength which emboldened European stocks that have been under the weight of the Euro, while oil dropped. Yesterday in mainland China the Shanghai Composite came back
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
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
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
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
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
by Chris Becker Here’s the latest from the iron ore/steel price complex: Obviously, steel prices are on the rise as iron ore goes to the moon. And that’s got the authorities in China worried. More from CNBC: In March, the government announced plans to slash steel capacity by 50 million metric tons this year in
By Chris Becker Well there it is – volatility spiked tremendously overnight with US and European stock markets losing nearly 2% as risk ran to safe havens like gold, Yen and bonds. Yesterday in mainland China the Shanghai Composite closed down nearly half a percent recovering a sharp selloff just before lunch to be
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
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
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
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
By Chris Becker Another night of volatility as two five year olds exchanged barbs over nuclear weapons, although this didn’t upset markets as much as some feared. European stocks sold off more sharply while US stocks slipped as currency markets remained calm while bond yields fell across the board on safe haven buying. The OPEC
by Chris Becker A speed wobble in iron ore and steel prices with Dalian futures taking a dive yesterday: The latest Chinese trade balance data indicated that iron ore imports were down nearly 9% for July, but are still up 7.5% year on year. More from Clyde Russell at Reuters: That’s by no means a
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
by Chris Becker It’s looking like a risk-off day in Asia as the North Korean situation flares up. But locally, the poor Westpac consumer confident print has the bottom falling out of the Aussie dollar: That’s a three week low for the Pacific Peso… It’s also off significantly against Pound and Yen
