Australian Shares

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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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Profits season misses

Via UBS: Reporting Season Progress Report Underwhelming Guidance Sees FY18 Estimates Crimped So far 73 members of the ASX200 have officially reported (47 large caps and 26 small caps). This represents c40% of ASX200 companies due to report in August though large-cap reporting season has now edged past the half way mark. Overall we believe

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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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Are US stocks a bubble about to burst?

As said this morning, the Fed hedged dovish minutes today with this: This overall assessment incorporated the staff’s judgment that, since the April assessment, vulnerabilities associated with asset valuation pressures had edged up from notable to elevated, as asset prices remained high or climbed further, risk spreads narrowed, and expected and actual volatility remained muted in

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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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International shares are less volatile than Australian

Investing can be a volatile ride, the last few days have reminded us. The last few days have also reminded us why holding international equities is often beneficial for Australian investors – the Australian dollar acts as a shock absorber on returns when volatility hits, which is exactly the opposite effect that international investors get investing

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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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Why is the ASX so crap?

Via the AFR: It’s almost impossible to find anyone these days who’s not frustrated about the lacklustre efforts of the local sharemarket when compared to Wall Street and how the major S&P ASX 200 index just can’t get much beyond the 5700 level in any meaningful way. Unfortunately for investors, both trends look set to continue. Earning

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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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When will the Fed end the business cycle?

Via Citi’s chief global strategist, Matt King: Markets seem optimistic that central bank plans to modestly reduce their support for markets in coming months can be achieved without disruption. We are not convinced. When other people’s children behave badly, the temptation is to presume it’s something to do with the parents. But then one day,

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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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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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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