Australian Shares

The risk complex is reeling from higher tensions in the Middle East as a top Iranian general is killed, with oil prices spiking considerably in the wake of the attack.

By Chris Becker  The start of the trading year was much better in the Northern Hemisphere overnight, with Wall Street rallying as tech stocks pushed the risk complex higher, despite a reversal in strength in USD which saw Euro and Pound Sterling fall.

The big move on the return of Asian stock markets today after the New Year was cut the PBOC cutting banks’s reserve requirement ratio by 50 bps, starting next week which in effect releases nearly $1trillion in funding.

By Chris Becker  The end of the trading year was marked by a lot of profit taking and squaring up as the month end and quarterly end triple witching saw major rebalances in equity portfolios, although Wall Street was largely immune from any downside volatility.

Asian stock markets remain in light volume mode, which always increases the risk of volatility, especially to the downside where selloffs were the order of the day.

By Chris Becker  The Santa Claus rally on risk assets is over with a wide selloff overnight as traders square up their results for the year.

With most markets here in Asia are still in light volume mode, there continues to be some downside volatility in USD as the year draws to a close.

By Chris Becker  Given the thin and volatile trading over the Christmas Period, this morning’s report will take a step back and look at the weekly trend overall.

By Chris Becker  Stocks advanced on both sides of the Atlantic, as thinner volumes and macro concerns are waved away as the Santa Claus rally continued apace.

With most markets here in Asia in light volume mode, there’s been a bit of downside volatility that’s not unexpected going into the Christmas period.

Via Alliance Bernstein: The Politics of “Tariffs” & The Fed The Trump administration used the hammer of tariffs to negotiate a bi-lateral trade agreement with China, but in doing so also influenced a change in domestic monetary policy.

By Chris Becker  Wall Street continued the Santa rally with the fourth straight record high week with confidence surrounding the US/China trade deal builds.

Asian markets had a mixed end to the trading week with no real advances across the region despite the usual record highs on Wall Street.

By Chris Becker  As traders around the globe slowdown for the Christmas break, Wall Street was the only major market to put on meaningful gains, with the absence of news translated into good news.

Asian markets were able to absorb a triple whammy today, with the latest BOJ meeting, the usual numberwang that is Australian unemployment, and the impeachment saga in the US.

By Chris Becker  Wall Street stumbled at the end of the session as all eyes were on the growing impeachment saga instead of the fundamentally divergent bubble that is occuring across risk markets.

Asian markets are putting in scratch sessions across the board as jubilation about the US/China trade deal turns into hesitation instead.

By Chris Becker  Wall Street edged to a nominal new record high overnight but only just as the USD rose against most of the majors, Pound Sterling in particular falling as the hard Brexit firms.

Asian markets are aligning again with overseas risk taking with optimism surrounding the US/China trade deal building as the USD strengthens again vs the undollar assets.

By Chris Becker  It’s all about record highs on stock markets in the wake of the US/China “phase one” trade deal with Wall Street bounding to a new high, dragging risk assets along for the ride.

A mixed start to the trading week here in Asia with only the ASX200 putting on outsized gains, namely due to a weaker Aussie dollar and a solid trifecta of economic prints from China.

Via FTAlphaville: Boris has won.

So says Bloomie: In 2011 and 2012, it was Europe’s credit crisis.

By Chris Becker  It was all about the US/China “phase one” trade deal on Friday night markets with a surprising reversal after the usual all-in sentiment moved to one of caution, with scratch results on Wall Street the result.

Everything is awesome as the Tories look set to wipe out any chance of the UK remaining both in the EU and in, well union as risk takers take the cue that the US/China trade deal is done as well, sending the USD down against almost everything but gold.