by Chris Becker While North Queensland batters down as Cyclone Debbie crosses the coast, the rest of Asia is feeling much more pacific after a shaky start to the week yesterday. The Shanghai Composite is down 0.3% after the long lunch break still at 3255 points, still unable to climb significantly above local support at the 3200 level.
By Chris Becker Markets remain unsettled as we start another week amid the chaotic mess that is the Trump administration with US stocks largely unchanged while European bourses retreated on the pricing in of the upcoming Brexit trigger. Commodities remain volatile especially copper and oil while iron ore heads south, all posing headwinds for
by Chris Becker Asia starts the week in a bad mood following the frustrating inaction in Washington on Friday. The fall in US stocks translated into falls across the region, save China, with S&P futures dropping alongside the USD as the Yen powered ahead providing a big headwind for domestic Japanese stocks. The Shanghai Composite is putting
By Chris Becker The major problem facing macro markets is a neophyte US president unable to turn his sales pitch into actual policy with a big fail in Congress trying to “reform” healthcare late last week. This lack of confidence is upsetting market watchers, who have hinged their bullish hopes on “huuge” spending in infrastructure
by Chris Becker Asia remains cautious in the face of seemingly intractable domestic policy development in the US, although Yen sold off providing a tailwind for Japanese stocks, Chinese bourses are under pressure from monetary policy tightening internally. Crude oil and other commodity prices remained depressed with the Australian dollar still weakening against the USD.
The pressure DCE is not abating with it down -1.5% at the open: The reason why be still more PBOC mortgage tightening, via Reuters: The People’s Bank of China (PBOC) will strictly check the source of down payments by individuals purchasing property in Beijing, the Beijing operations office of the Chinese central bank said in a
by Chris Becker Is the dip already over? Most stock markets in Asia put in positive or scratch sessions taking the shaky but still positive lead from US stocks overnight. Currencies were effectively unchanged with a small rally in USD against Yen offset by a lower Aussie and Kiwi dollar as commodities pulled back slightly.
This reeks of desperation: It is the sort of deal that would have any real estate investor salivating: Interest-free loans, and the ability to walk walk away from any losses if the price falls. This is the share offer that real estate guru, John McGrath, is using to retain the top talent at his embattled
Macquarie stating the obvious today (but still before most others): As good as it gets: Hedging our bets Most questions we encounter are about why commodity stocks shouldn’t be lower rather than why they should trade higher. The bears have been on this track for more than 6 months, so we are cautious about putting
By Chris Becker The dip in stocks may well be over before it starts with US stocks recovering last night, while Euro bourses slipped on the London attacks but currency markets were non-plussed. Treasuries remained strong with 10 year yields slipping below 2.4% with further advances in European yields on the safe haven trade.
by Chris Becker Markets in Asia are getting squished as a result of the “shock” fall in US stocks overnight. Red across the board while the flight to safety sees bonds bid up high with Treasuries down to nearly 2.4% and Aussie issues off four points to 2.77% as the Aussie dollar moderates its falls from last
Dalian is open and soft but holding: The good ‘ol days return today as Big Iron is getting hosed: FMG is falling -5% and describing a superb head and shoulders topping pattern: The uptrend is broken but we’ll need to see it breach the $5.80 neckline before the topping pattern is confirmed. RIO has a
By Chris Becker The risk trade faced a triple whammy overnight with the Trump chaos, a Fed hellbent on raising rates and the North Koreans doing their normal bat-shit crazy distractionary brinkmanship. This led to a big selloff in US stocks as the USD was also abandoned by all and sundry. Todays session in
Dalian is down the better part of -5% today: But nobody cares as Big Iron has barely budged: Any time iron ore is in the $90s there is only downside. FMG’s potential head and shoulders top has firmed a little. Big Gas is holding too despite the mushrooming political risk: Big gold is under-performing: Big
Open an X-file: Gerry Harvey‘s retail operation Harvey Norman has no explanation for why its shares tanked badly on Monday. The company was responding to a please explain notice from the ASX after its shares dropped more than 8 per cent on Monday – wiping hundreds of millions from its market cap – with no
By Chris Becker The risk trade is transitioning back to the safety of bonds as the USD softened overnight on comments from Fed members that the tightening regime will probably include at least 2 or 3 hikes this calendar year. US stocks retreated, while gold and other undollar currencies were stable or rose slightly
Like Goldman Sachs basically: A quick, chart-heavy recap of the main data points we’re watching, key shifts in views and Aussie relevant insights from our global teams. The macro continues to point to improving momentum. We continue to position for further rotation into value/cyclicals: The Australian economy continues to improve, house prices and investor credit
by Chris Becker Markets in Asia are mixed to say the least with Chinese bourses surging and the rest struggling as Yen and Aussie dollar lift higher against a floundering USD. Australian 10 year bond yields are falling again while the oil price slipped in weak Asian trade. The Shanghai Composite was up before the long lunch
By Chris Becker The Dutch election pushed up Euro stocks overnight, but US bourses retreated or put in scratch sessions taking pause after the post-Fed meeting bounce. Undollar assets moved higher against USD while oil slipped again as gold moved higher above $1200USD per ounce. Looking at Asia’s session yesterday, the Shanghai Composite closed nearly
by Chris Becker Markets in Asia reacted positively to last nights lead following the Fed’s interest rate rise as the conga line of tightening fiscal policy continues with the Chinese central bank raising rates today, the BOJ holding fire and the BOE meeting later tonight. Oil and gold rose as did the other undollars with