Australian Shares

By Chris Becker  Here comes the breakout and the second phase in the relief rally as risk markets go ga-ga over a potential vaccine for the coronavirus, while lapping up all the central bank “we will throw the kitchen sink at risk assets” mantra that continues to be rolled out by all and sundry.

A solid start to risk taking here in Asia with the usual Monday morning gaps absorbed with aplomb, especially viz currencies as investors look towards the Powell Put over the weekend, as the US Federal Reserve turns Japanese.

By Chris Becker  Friday night saw a relatively good end to a hectic week across risk markets with European stocks playing catchup while Wall Street lifted slightly, its optimism about economic life opening contained somewhat by the growing China/US trade dispute, nevermind the pandemic issues.

A somewhat mixed day here in Asia with Chinese shares pulling back on the brouhaha developing between The Middle Kingdom and the Flailing Empire as Trump again ramps up the rhetoric on trade and other measures.

Six weeks ago, billionaire Solomon Lew told landlords that none of the 1,200 stores within his Premier Investments group would be paying rent while they were closed because of COVID-19.

Selling is the order of the day here in Asia with all stock markets lower by 1% or more in response to the selloff on Wall Street overnight, as traders weigh up more negativity around the “V” shaped recovery post-coronavirus.

Markets are confused by the Aussie jobs report with larger than expected job losses, and dire underemployment, but a tiny rise in unemployment.

Via the AFR: Appaloosa Management’s David Tepper sounded a strong note of pessimism on the state of the stock market, calling it the most overvalued ever outside of the bubble of 1999.

  By Chris Becker  Another sour night on overseas markets with Federal Reserve Chair Powell giving a reality check on the economic impact of COVID-19, causing a selloff across Wall Street as Chinese/US relations also took a dive.

Asian markets gapped lower and were bearish throughout the session until a surge in the afternoon saw many put in scratch sessions or mild rises.

The Australian dollar is still under pressure this morning: Bonds are bid: XJO is bleeding once more: Big Iron is down modestly: Big Gas more: And Big Gold is soft: Big Banks do not look well: While Big Chunt has kept the dream alive: At issue is the so-called virus “second wave”.

  By Chris Becker  The latest US CPI data and somber (i.e realistic) testimony from Dr Fauci about the coronavirus in the US put a big dampener on risk taking overnight with US stocks falling 2% across the board.

A mixed trading session throughout Asia with most stock markets slipping or putting in scratch sessions in response to the equally mixed and cautious run on Wall Street overnight.

  By Chris Becker  Increased trade tensions between China and the US added caution to the mix in a flat session overnight on risk markets with most bourses making a hesitant start to the trading week.

A good start to the week here in Asia with most stock markets rising in unison in response to the positive swing on the disastrous US unemployment print on Friday night.

Via Goldman which sees the S&P500 minus 18% to 2400 by August: First, COVID-19 infection rates outside of New York continue to grow.

One of the reasons for the Nasdaq outperformance in recent weeks has been that its demand has held up versus wider business owing to the great decentralisation.

Via REA this morning: No guidance on the market at all.

By Chris Becker  Risk swung back to confidence overnight as the Federal Reserve turned Japanese in its rhetoric, while US initial and continuing jobless claims hit new record highs and well above expectations.

Yet another day of mixed results here in Asia with the return of Japanese traders not increasing any risk appetites.