Australian Shares

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Huawei accused makes bail

Risk is up and this is why, via CNBC: A Vancouver judge set a $10 million CAD bail ($7.5 million U.S.) for Huawei Chief Financial Officer Meng Wanzhou Tuesday, capping a week of increasing trade tensions and strong market reactionsaround the dispute between the Department of Justice and one of China’s largest hardware companies. The

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Macro Morning

By Chris Becker Volatility was the name of the game overnight on risk markets with European bourses rebounding while US markets exchanged gains for losses although the broader S&P500 finished with a scratch session. I think all traders are ready for a Christmas break because the culmination of Trump’s trade war, Brexit and other geopolitical

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Macro Afternoon

A mixed result following the very late rally on Wall Street overnight with Japanese stocks retreating while the rest of Asia had minor gains, showing a distinct lack of confidence across the region. The Shanghai Composite is up only a few points going into the close, or 0.1% to 2586 points, hanging on but still unable to get

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What crashed the ASX?

The Australian says: Escalating China-US trade tensions pummelled the Australian sharemarket yesterday, pushing the local bourse to record its third $35 billion-plus wipe-out in as many months. The benchmark S&P/ASX 200 index took a 129-point, or 2.27 per cent, dive to 5552.5 points, its lowest level since December 2016 and just shy of a two-year

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Macro Afternoon

It’s been a relatively good finish to the trading week here in Asia despite epic overseas volatility with stock markets putting scratch sessions or slightly higher closes. The currency and bond markets are poised for tonight’s US unemployment print, the result of which hinges on the Fed’s next interest rate move. The Shanghai Composite has escaped

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Macro Afternoon

It’s been a straight risk-off session here in Asia as the Huawei headlines are fracturing the possibility of a trade deal between the US and China, fueling safe haven bids and dumping of stocks. US Treasury yields continue to fall while commodity currencies their downward trajectory as markets expect a dour night on Wall Street

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Australian dollar smashed by Huawei arrest

Via the ABC: Canada has arrested Huawei’s global chief financial officer in Vancouver, where she is facing extradition to the United States on suspicion she violated US sanctions against Iran, reports say. Meng Wanzhou, who is one of the vice chairs on the Chinese technology company’s board and the daughter of company founder Ren Zhengfei,

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Macro Morning

By Chris Becker Risk markets were helped overnight due to the US holiday although European bourses caught up to the previous Wall Street carnage, like in Asia yetserday the falls weren’t as strong. Currency markets retreated in volatility although the Aussie and Kiwi  fell slightly, the Euro was largely unchanged while gold put in another high. Recapping Asia’s

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Macro Afternoon

The carnage from Wall Street overnight has not been exactly translated into the same falls here in Asia, but it’s certainly sent volatility higher as the fallout from the US/China “trade deal that’s not a deal”. The Shanghai Composite is down 0.5% to 2651 points, still remaining above the previous support level at 2600 points, digesting the volatility

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Macro Afternoon

The positive mood from the weekend’s G20 meeting has turned sour as the Trump trade “deal” between China and the US has fizzled into empty promises with both sides dialing back expectations. No surprises there. Stocks have retreated with the US Treasury yield curve inverting once more while the US fell against Yen and the other majors.

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Bonds boom as ASX struggles

The AUD is roughly flat through the morning: Bonds are threatening to break out as the bid booms. Pleased to report we went long a fortnight ago: And the ASX struggles: Dalian is flat: Big Iron is mixed: Big Gas is sinking again. Spot regional LNG prices are now sliding with oil: Big Gold is

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Macro Morning

By Chris Becker The positive outcome from the weekend G20 summit continued overnight after making stocks and risk currencies gap on Monday morning. US Treasury yields fell below 3%, with interest rate futures still indicating an 80% chance of another Fed hike in December, with added confirmation as the latest ISM manufacturing print surprising to the

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Macro Afternoon

The weekend’s G20 meeting with the trade war truce between China and American has seen some big gaps up in risk assets, with Chinese stocks in particular rallying hard. The Australian dollar has been a big benefeciary, gapping up against all the majors and crosses, as has the Kiwi with the Yuan weakening considerably. The Shanghai

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Macro Afternoon

Outside Australia it’s been a good finish to the week on stock markets across Asia as aniticpition builds for the Trump-Xi meeting at the G20 conference this weekend. The Chinese manufacturing PMI came in bang on no expansion, which may have been behind some of the lack of confidence on Australian markets. The Shanghai Composite is up

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Macro Afternoon

A fairly muted response to the big surge on Wall Street overnight here in Asia today, with modest gains outside of China, while the Middle Kingdom share markets suffered a small setback. The USD continued its selloff however, especially against Yen and Kiwi, while the Aussie dollar remains above 73 cents. The Shanghai Composite is down 0.3% to 2594 points

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Fed hands ASX a dead cat

AUD is down during the morning after the big spike: Bonds are bid again: XJO is up meekly: Big Iron is up and away. I still think RIO is fundamentally well positioned and hope that head shoulders top dissipates! Big Oil is up, wrongly. OPEC looks ever more snookered by Kashoggi meaning oil must go

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What to buy under a dovish Fed

Via Damien Boey at Credit Suisse: In our recent note “Style rotation after a panic”, dated 31 October 2018, we highlighted that for this stage of the risk appetite recovery cycle, value has been underperforming badly as a style, while quality has been significantly outperforming. The performance gap has not really narrowed in November. Overnight,

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Macro Afternoon

Outside Australia, it’s been a good day for stock markets across the region with currency markets relatively quiet leading up to an important speech by Fed Chair Powell tonight, which is likely to involve some twitter dribbling in response from Trump. The Shanghai Composite is up 0.7% to 2592 points going into the close, perhaps finally making some

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Fundie: Housing correction “just getting started”

Via the AFR comes T Rowe Price’s head of Australian equities, Randal Jenneke: The fund manager’s base case view sees house prices falling by between 10 and 20 per cent, but outside factors such as the 2019 federal election could escalate the downturn. “The Labor Party wants to change a lot of policies around negative