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
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
By Chris Becker Markets ran for safe havens overnight in the wake of an awful terrorist attack in Spain and the realisation that yes, the US president is nuts and he’s not going anywhere or will get anything substantive done by a now impotent Republican Congress. And this is before Mueller’s investigation really gets
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
The commodity pain trade is roaring upwards today with iron ore off the hook up 6%: Big Iron is pretty circumspect about it: Big Gas is weak, notably so when one reads all of the positive guff coming from brokers: Big Gold is hot as it signals more USD weakness. I am a seller here
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
By Chris Becker Coo coo catchoo. The Fed goes somewhat dovish in its latest meeting minutes, complaining about low inflation, sending the USD down sharply from its recent little high and supporting stock markets on both sides of the Atlantic. An upside surprise to the EZ GDP print helped as well. Commodities were mixed
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
The gas cartel is in full swing this week. We had the Santos write down yesterday. Today Origin, as it’s white elephant hoses another $3.1bn into the sea: But who cares when your artificial gas shortage throws up electricity profits growth like this: Recalling that gas sets the price of electricity in the National Electricity
I am not very interested in Dominoes as a business per se. But I am interested in it as an exemplar of the wage…ahem…massaging business models that have taken hold in Australia’s service sectors. Adele Ferguson is clear today: Since it listed on the ASX in 2005 at $2.20, Domino’s shares surged more than 2500
By Chris Becker The USD led the charge overnight as advanced retail sales surprised to the upside, sending bond yields higher on even firmer expectations of another rate hike from the Federal Reserve before the year is out. Stocks were relatively flat in the US as a result, while European bourses advanced on good
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
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.
By Chris Becker Volatility deflates overnight as worries over Korea abated, sending stocks higher as safe havens like Yen and gold were dumped. Meanwhile, the USD returned to strength which emboldened European stocks that have been under the weight of the Euro, while oil dropped. Yesterday in mainland China the Shanghai Composite came back
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
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
See ya and wouldn’t wanna be ya. That’s today’s market message for Ian Narev as CBA jumps on his exit: Dalian is eroding as China data heralds the slowdown: Not that Big Iron cares: But it will! Big Gas also looks weakish: Big Gold is flying though: I’m a seller here as the DPRK
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,
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
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
By Chris Becker Well there it is – volatility spiked tremendously overnight with US and European stock markets losing nearly 2% as risk ran to safe havens like gold, Yen and bonds. Yesterday in mainland China the Shanghai Composite closed down nearly half a percent recovering a sharp selloff just before lunch to be
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
By Chris Becker Another night of volatility as two five year olds exchanged barbs over nuclear weapons, although this didn’t upset markets as much as some feared. European stocks sold off more sharply while US stocks slipped as currency markets remained calm while bond yields fell across the board on safe haven buying. The OPEC
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
By Chris Becker US stocks retreated overnight as volatility ramped up on the North Korean situation. Bonds were sold off as oil remained subdued awaiting the end of the two-day long OPEC meeting while the USD asserted itself against the majors. Yesterday in mainland China the Shanghai Composite has closed up only 2 points higher to
