Chris Becker

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Australian manufacturing picks up in February

by Chris Becker The latest manufacturing PMI was released this morning and it shows a mild recovery underway in the sector, although the AIG note that the downturn in housing construction is hurting conditions. Quelle surprise. More here: The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) recovered by a further 1.5 points

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Macro Morning

By Chris Becker  It was all about the USD overnight with the release of 4Q GDP figures and the latest CPI print from Europe, with the former sending Treasury yields higher and the latter jostling Euro around but giving European stocks a reprieve from impending recession fears sending them higher. Looking first at the action

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Macro Afternoon

Outside Australia, stocks have dropped across the region as the US/NK summit ends on a whimper, cut short with no agreement. Risk markets have bid up the USD and pushed stocks down as the latest Chinese manufacturing PMI comes in lower than expected for a third month in a row. The Shanghai Composite is off

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Daily iron ore price update (Rio booms)

by Chris Becker Iron ore prices continue to slide with both spot and futures markets putting in a sixth straight loss. Port inventories rose to just over 145 million tonnes last week, the highest since September 2018, but steel demand should kick in soon. Texture from Reuters: The spring period beginning in March, after China’s

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Macro Afternoon

Stock markets are generally buoyant across Asia today with a few macro releases, including Australian construction data, disappointing to the downside, but having almost no effect on risk taking. The Shanghai Composite is up nearly 1% going into the close, taking back most of the previous losses to remain above 2900 points at 2964. The Hong Kong

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Australian dollar falls as 4Q GDP tanks

by Chris Becker The Australian dollar has rebuffed the 72 cent level against USD after the release of the 4Q construction activity report this morning: This big miss will be recalculated by the market as many investment houses will race to review their RBA rate calls and hence put a headwind in front of the

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Macro Morning

By Chris Becker  Risk markets remained in a holding pattern overnight with US stocks largely unchanged as Treasury yields and USD moved lower, with Fed Chair Powell’s testimony to Senate restating the Reserve’s desire to keep rates on hold. The possibility of a Brexit delay sent Pound Sterling zooming, lifting Euro in sympathy. Looking first

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Daily iron ore price update (Brazilian push)

by Chris Becker Iron ore prices nearly hit a monthly low yesterday as reduced steel production and increased Brazilian exports weighed on the complex. Dalian prices are down nearly 10%, although rebar prices continue to climb: From IG: Brazil’s daily exports reached 1.4 million tonnes of iron ore per business day, despite last month’s mine

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Macro Afternoon

The good mood from overnight on the basis that the US/China trade talks are progressing forward has turned here in Asia, with red across the board. Stocks have declined, with Chinese bourses in the lead as the Yuan fix strengthened considerably, while Pound Sterling rockets higher on the possibility of a delayed Brexit. The Shanghai

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Australian dollar falls as Yuan strengthens

by Chris Becker The Australian dollar kept rolling higher yesterday after a substantial bounce off monthly lows last week, buoyed by the potentiality of a definitive outcome in the dragged out US/China trade talks. Indeed, up until the Sydney open this morning, where Pound Sterling spiked on the potential news in a postponement of Brexit,

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Daily iron ore price update (restocking concerns)

by Chris Becker The iron ore complex was not buoyed by positive statements from the US and China trade delegations yesterday, with spot prices in Tianjin plus Dalian futures falling as restocking levels are not as strong as expected following the Lunar New Year holiday: More on the restocking from SPGlobal: Traded levels for Australian Pilbara

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Macro Afternoon

Asian share markets were given a boost this morning with some progress on the US/China trade talks, building on the positive mood on Wall Street on Friday night, with the Chinese Yuan firming to new six month highs against USD. The Shanghai Composite is up more than 4% going into the close, soaring above 2900

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Bitcoin’s dead cat bounce hates weekends

by Chris Becker The cryptocurrency we love to hate is having a tough Monday morning with another weekend gapdown, falling to just above the $3800USD level: A lot of fingers burned from the recent uptick, with a big uptick of new entrants into the “scheme” as $15billion in market value was wiped off this morning.

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Macro Morning (Trading Week)

By Chris Becker  Looking at Chinese stocks first, where last week saw the Shanghai Composite shoot higher after its recent breakout, getting slightly above the 2800 point level as confidence returned.   This was mainly due to more optimism over the US/China trade talks plus the possibility of more internal stimulus, as confidence continues to build

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Daily iron ore price update (Brazilian supply dent)

by Chris Becker The iron ore complex was relatively quiet on Friday with spot prices retreating slightly, futures edged higher on anticipation of advancements in US/China trade talks: Meanwhile, the supply hits keep on coming with Brazilian supply at risk again throughout 2019. Texture from Mining.com: Excluding Vale (NYSE:VALE), close to 8 million tonnes of

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Macro Afternoon

Asian share markets are following the overnight lead with some mild falls and scratch results across the region. The USD rallied against Yuan and Yen, whereas the oversold Aussie has had a little bounce back following the Chinese coal debacle. The Shanghai Composite is steady going into the close, basically up only a handful of

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Macro Afternoon

Asian stocks generally rose across the region with most activity in currency markets as the Chinese coal closure and the latest domestic unemployment print pushed the Australian dollar all over the place. The Shanghai Composite fell in the latter half of the session, falling 0.3% to close at 2751 points as its bear market rally pauses.

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Macro Afternoon

Asian stocks basically moved together today with solid gains across the region, save Australia as local stocks were pushed down by a higher domestic currency, while gold almost hit $1350USD per ounce. The Shanghai Composite is tracking well, up 0.2% to close at 2761 points as its bear market rally continues. The Hong Kong Hang Seng

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Macro Morning

By Chris Becker  The return of Wall Street saw risk markets nudge a little higher while a surge in USD weakness due to the leaked concerns of the US trade delegation for a more stable Yuan saw major pairs move swiftly against King Dollar, which should provide a headwind to Asian stocks here today. Looking first

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Macro Afternoon

Asian stocks could not build on their boisterous start to the week with a flat session across the region due to the lack of lead from US markets which were closed overnight. The USD surged however with all pairs falling including Yuan which the PBOC again weakened. The Shanghai Composite is basically flat, down about