Australian Shares

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Will cutting immigration smash the stock market?

The AFR says so: Poorly constructed and strict immigration policy is one of the biggest threats to sharemarket returns, say some of the country’s biggest money managers. An expert panel at the Stockbrokers and Financial Advisers Conference in Sydney on Thursday agreed Australian investors could face deteriorating returns thanks to short-sighted policy that curbed population growth. “One of

5

Macro Afternoon

by Chris Becker Logic? Rationally thinking? These things don’t go along with stock trading! Chinese financial shares are up sharply, lifting the rest of Asia as the USD retreated while oil gained in anticipation of extended supply cuts at tonights OPEC meeting. In China the Shanghai Composite has closed up nearly 1.5% higher to be

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Macro Afternoon

by Chris Becker Asian markets have absorbed the Moody’s rating cut to China’s debt levels with aplomb with initial downside reaction mainly filled across share markets, with most volatility on commodities as iron ore crashes alongside copper and a weakening gold price. In China the Shanghai Composite recovered from the rating cut after being down

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Macro Afternoon

by Chris Becker Asian markets have moved to safe havens after the Manchester attack and a variety of political distractions in the Americas plus concern over Noble Group. Futures are pulling back while the USD is sold off as traders head for Yen and gold, while oil remains stable after its recent rise, waiting for

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Big Iron dead cat stutters

Dalian is soft today: No obvious reason for it beyond good sense and the looming wipe out of Noble Group which may be forced into inventory liquidations!…Big Iron has eased: Big Gas is firm on OPEC: WPL and OSH look bullish on the charts but they’re still way overvalued assuming $65 oil. Big Gold is

17

Macro Afternoon

by Chris Becker Asia starts the week with a good lead from Wall Street on Friday night, and all stock markets – save continental Chinese – are in the positive helped along by a bullish mood on oil prices. In China the Shanghai Composite is having a bad start to the week, falling going into

9

Big Iron hysteria builds as miners move into coconuts

There really is no accounting for people. They are crazy. Dalian has lost some of its overnight gains today: But Big Iron hysteria is in full swing as miners move into selling coconuts. BHP is up, RIO is powering into its next boom and FMG surging another 5% even though it is giving away dirt at

3

The sublime to the ridiculous or should you buy miners?

Three takes today that run from the ridiculous to the sublime around buying miners. Ridiculous is Credit Suisse: April stats of record production really point to record iron ore consumption China’s reported steel production and apparent consumption for April hit record levels. However, as we discussed in our Iron Ore Forecast note of 17 May,

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Macro Afternoon

by Chris Becker The short covering trade continues as Asian stocks follow the positive overnight lead by Japan as investors turn their eyes to a different American impeachment crisis in Brazil. Commodities rose a little as the USD wavered slightly after its bounce back last night. In China the Shanghai Composite is steady going into the

1

Morgan Stanley: Stocks pivot to Europe

From Morgan Stanley today: Bottom line: USD has come under broad selling pressure(following inflation expectations) and is now trading below the level when US President Trump was elected. In the near term, the market should trade USD lower into next Wednesday’s expected testimony from Comey. The longer-term story is about growth expectations. EUR should stay

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Macro Afternoon

by Chris Becker Stocks continue to selloff in Asia in response to last night’s big move on Wall Street. While the direction is the same, the magnitude has been muted relatively speaking. Volatility is only just beginning to build however, so stay tuned for more! In China the Shanghai Composite is selling off going into

0

How’s that “bondcano” treatin’ ya?

Let it go, Hasan, from Credit Suisse: Markets are set to enter ‘risk-off mode’ in the near-term with the level of political uncertainty in the US continuing to rise. The combination of lower bond yields and a more opaque policy outlook will be positive for the defensive/growth companies which dominate the Aussie Market Darlings. But

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Has Trump killed the Trump trade?

Citi says it’s all a storm in teacup:  A report from the New York Times citing a memo alleging that President Trump asked former FBI Director Comey to end an investigation into Russian links has roiled markets. Concerns about Congressional reviews, potential special prosecutors and a deeper inquiry into the allegations could paralyze the

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Macro Afternoon

by Chris Becker Stocks sold off across the region today with increased volatility over the Trump administration turmoil and a lower USD as a result. This has sent risk to safe havens like Yen, dropping Japanese stocks in the process, and government bonds with US and Aussie yields both dropping. Commodities remain mixed with oil