Australian Shares

  A bit of drama to keep us traders awake today as yet another Trump nincompoop blurts out the wrong thing, sending futures to the floor before a hasty “I didn’t really mean that” retraction saw risk markets square up again.

By Chris Becker  Risk sentiment is only positive on Wall Street due to a surge in a handful of tech stocks, as market breadth stretches out as ridiculously thin as the overall PE valuations, with the NASDAQ up through 10,000 points overnight while European bourses slipped.

It’s a flat start to the trading week as risk markets continue to absorb a lot of hesitation and concern from weekend stats showing the coronavirus isn’t slowing down as expected, with emerging markets and the failed US response creating a lot of “second wave” risk.

By Chris Becker  Risk sentiment continues to fade with another hopeful session on Wall Street dashed on Friday, selling off into the close as the risk of the “second-wave” (aka giving up on the first wave) surging throughout the US, let alone other emerging countries weighed once more.

Probable chart captions: “There is no second wave.

By Chris Becker  Risk sentiment continues to fade with a mess Wall Street session overnight, as money pressured bonds instead as US Treasury yields fell further.

More hesistation and concern feeding into risk markets today here in Asia, with the shocking unemployment print in Australia absorbed without much fuss.

There is a decent argument that stock markets have condensed an entire three-year cycle into three months.

By Chris Becker  Risk sentiment is fading slightly as geopolitical concerns across the Koreas and India/China border clash with the growing coronavirus outbreaks in China and the Southern/western US states.

A much more measured session across stock markets here in Asia as profit taking was the order of the day – except locally as bidders kept on bidding!

Via BofAML monthly fundie survey.

By Chris Becker  There’s a lot to digest from overnight markets including China and India border disputes, rising infection rates and case loads of COVID-19 in the US South, plus a swathe of economic data and Fed Chair Powell’s testimony to Congress.

It was “let’s forget about Monday” on Asian share markets today in response to the next layer of the Fed punchbowl and the potential for another Trump crony bailout/looting spree aka bailout package announced overnight.

Via FTAlphaville: Hertz, the bankrupt car rental company which has become the poster-child for the current market’s speculative excess over the past fortnight, just filed this with the SEC.

By Chris Becker  The Fed rides to the rescue!

Not a good start to the week for Asian stocks with a strong selloff across the region and Wall Street ready to tumble as markets reopen tonight.

Via the excellent Damien Boey at Credit Suisse: Extraordinary factor rotation of late.