Outside of China it’s been a poor finish to the week for Asian share markets, with the fallout from the US selloff and “bondcano” still being felt across the region. Chinese GDP data was slightly less than expected but did not translate into falls on the mainland or in Hong Kong, while a lower Yen
The AUD is still weak this morning: Bonds are strongly bid: As XJO falls moderately: Big Iron is copping it: Big Gas too: Big Gold is OK. EUR fracturing is providing real support: Big Mortgage is still struggling: Big Tech looks like going lower: But not as low as Big Realty! Avagoodweekend.
By Chris Becker The correction is back as US stocks led the selloff overnight, Treasury yields came back slightly while the USD rose against most the majors as risk sentiment retreated back to the mean, with Yen getting the safe haven bid. Sadly for the Saudis, oil prices continue to crater with WTI and Brent
The bounce in equities has been shortlived with only the Australian market not dipping into the red this afternoon, with local employment data keeping the bears away for another day. A weaker Yuan fix plus reduced confidence has seen Chinese stocks selloff sharply while gold is holding on, other undollar assets are falling heading into
AUD up on jobs: But CNY is sending a warning of more pressure ahead: Bonds hosed: ASX down modestly: Dalian firm: Big Iron is up: Big Gas down: And Big Gold: Big Mortgage is flat: Big Property is mixed: On pause.
By Chris Becker USD came back to strength in the wake of the hawkish FOMC minutes, quickly taking the legs out from under the tentative bounceback in equity markets. All the major currencies slipped against King Dollar with oil prices also falling on the back of Pompeo’s mewing with the Saudis. Treasury yields continue to
Finally, a decent rebound in stock prices in Asia, as markets follow the dual European/US mood and lift across the board. The problem is with Treasury yields still not lowering and the USD remaining weak, can this bounce be sustained through the week with another earnings season around the corner. The Shanghai Composite finished the session up
AUD is holding the line today: Bonds are bid: Aussie shares have limped to a 1% gain despite wild gains overnight: Big Iron is down: Big Gas up. We picked up some WPL yesterday on Iran risks: Big Gold is fading. I remain skeptical: Big Mortgage is dead cat bouncing on good US bank earnings:
Is realestate.com.au the ideal housing bust short? It’s certainly come off hard recently, printing what can only be described as a monstrous technical chart with the double-top from Hell: REA makes 90% of its dough in Australia and most of that from real estate listings so its exposure to the bubble is exceptional. Yet despite
By Chris Becker Here comes the bounce with tech stocks leading the charge on Wall Street, exhausted selling on equity markets has turned into frantic short covering with big moves overnight. Despite the good mood, Treasury yields continue to lift higher while the USD advanced against traditional safe havens, the Aussie and Kiwi remain surprisingly
DXY was soft last night: AUD was firm versus DMs: But could not keep pace with risk on EMs: Gold held on: Oil was firm: Base metals meh: Miners too: EM stocks launched: With junk: The Treasury curve flattened: Bunds were bid: Even Italy improved: And stocks went nuts everywhere (but here!): Westpac has the
A mixed day here in Asia which is better than red across the baord with Japanese stocks leading the way, pulling along local shares as the USD recovered slightly. The Chinese CPI print picked up slightly as the PBOC signalled its intend on defending the major 7 handle on the Yuan against USD, with the official
AUD is firm through the morning: Bonds are soft: XJO gapped higher at the open but has faded ever since: Big Iron is mixed: Dalian soft: Big Gas too: There are signs of life in Big Gold. I am still unconvinced beyond a small counter-trend rally: Big Mortgage is still under selling pressure. It gapped
Karen Moley puts lippy on the banking pig today: …there’s no doubt that the Hayne royal commission – which has forced the banks to crack down on some of their lax lending standards and to forsake some of the suspect fees they’ve been happily pocketing for years – has played some role in this sell-off
By Chris Becker Equity markets are still feeling the pressure with US stocks slipping following what looked like a positive session and rebound in Europe. The USD remains under a cloud as well with the antipodean currencies lifting in the wake of a lower than expected advanced retail sales print. Treasuries were largely unchanged and
Despite the positive finish on Wall Street on Friday night, markets here in Asia are continuing to selloff as tensions mount in the Middle East with Saudi stock markets tanking on the weekend (about the only thing they get right is allowing trading on weekends!) plus a fallout from German and Italian political troubles. Safe
AUD is down modestly today as Saudi and German tensions weigh: Bonds are bid: As the ASX is pounded lower despite the big jump on Wall St and relatively calm futures: Dalian is flat: Big Iron is down: Big Gas is up: Big Gold is mixed: But the action is in banks and it is
By Chris Becker A tumultous week on equity markets, spurred by the “Bondcano” as 10 year US Treasury yields continue to spike higher above the much vaunted 3% level. This has caused a cascade of effects, exarcebated by the ongoing trade tensions between the US and China. This has been setting up for sometime as
DXY firmed, EUR and CNY fell Friday night: AUD was down a little: Market positioning is extremely short at -73.3k contracts. It has only been more stretched two weeks in history: With the market so short, it is difficult for the AUD to fall and easy for it to be squeezed higher on any good
Is sanity finally prevailing with Asian stocks up across the board today, presaging the end to the worst two days since February? No, its just exhaustion going into the weekend, so keep your shorts on! Chinese stocks are leading the recovery today but at the cost of increased volatility, while the selloff in USD has
Mark this one down as hoocoodanode: Couldn’t have happened to a nicer firm. Crash: It’s only the beginning…
AUD is still strong this morning, partly explained by a falling USD and partly by bullet-proof bulks: Aussie bonds have actually under-performed other nations during the correction. I assume it’s because of the bullet-proof bulks but whatever it is it’s badly misled as the housing crash gathers steam: XJO is down modestly against today: But
DXY was hit hard last night as Donald Trump attacked the Fed. EUR and CNY both jumped: AUD rallied a result: So did gold: But oil was smashed as US inventories keep building: Base metals were solid: So were miners: As the EM collapse goes on: Junk improved: Treasuries were bought: Bunds too: Not Italy:
By Chris Becker Red October continued overnight but the falls on equity markets are abating somewhat at the 1-2% per session level with volatility decreasing from sky high levels, but confidence is still nowhere to be seen. The USD is weakening against all the majors now in response, as Treasury yields start to stabilise after
A sea of red across Asian stock markets today, once again showing how interconnected risk is, particularly as we move into the “scariest” month of all – October! Following last night’s 2-4% losses, most bourses here lost 3-4%+ with Chinese markets the most affected. Currencies were relatively benign with Yen buying abating and the Aussie
The AUD is getting creamed this morning, sinking right to the lows: XJO is off -2%: Bonds are bid: Big Iron is down -2% as well: Big Gas a lot more: Big Gold is mixed: Big Mortgage is in free fall. CBA is at the lows and WBC plunging in free air: And it has
By Chris Becker A bath of blood on overnight markets with US stocks falling nearly 4% and European bourses losing at least 2% with oil and commodity prices also cratering. It’s all about the US bond market with the 2% yield now hitting a 10 year high as interest rate rises crunch a not quite
Whoops! DXY was soft while EUR and CNY firmed a little: The Australian dollar was hosed: EMs more: Gold was firm: Oil was hammered: Base metals fell: Big miners were flushed: EM stocks fell of a cliff: Junk debt too: Treasuries were bid: Bunds not so much: Italy eased a bit: It was stocks carnage:
A slightly positive result across Asian share markets today, with the USD weakening against everything except Yuan, which fell slightly due to the PBOC fix. Japanese stocks rose despite the firmer Yen, while the Aussie was helped by a surprise boost in consumer confidence, as local stocks finally stabilised. The Shanghai Composite is up only a
The Aussie dollar is roaring higher this morning as the bulks roar and consumer confidence was OK: We can expect to see these squeezes continue on any good news given the market is so short. Bonds are bid: The ASX can’t lift. The rotation from banks to dirt is zero sum game: Dalian is firm
