Australian Shares

By Chris Becker  The US Federal Reserve cut interest rates as expected overnight at the FOMC meeting, but the response has been mixed across risk markets.

Caution reigns across Asia with the somewhat positive mood on Wall Street unable to be translated into any meaningful gains on stock markets, with bonds moving higher and USD firming.

Quite a mixed session across Asia today with Chinese stocks slumping, Australian advancing while the long weekend dampener has seen Japanese bourses remain steady, despite a weaker Yen.

The Australian has been falling this morning and appears in danger of deeper retracement: Bonds are bid again: A stocks fall: Dalian is soft: Big iron has flamed out.

By Chris Becker  The oil crisis in Saudi Arabia dominated the headlines overnight, pushing stock markets down and sending WTI and Brent crude prices nearly 14% higher.

It’s an almost risk off day here in Asia as markets react to the weekend attack on Saudi oil production by the Yemeni’s, producing the inevitable spike in crude prices, gapping nearly 10% or so before moderating this afternoon.

By Chris Becker  Friday night saw US stocks tread water despite a better than expected retail sales print with US Treasury yields instead spiking higher, dragged along by German bunds despite the ECB’s Thursday announcement of easing and more QE.

The risk on mood in Asia continues with very solid rises in Japan and China, with local markets drifting only a little higher as currency and commodity pressure weighs.

By Chris Becker  A volatile night on currency markets as the ECB cut rates and restarted its QE program in the face of a continental recession and Brexit concerns.

The risk on mood has increased here in Asia with solid rises across most stock markets, although locally the ASX200 is dragging its feet.

By Chris Becker  The positive mood is quickening with overnight markets reacting to the upside on US-China trade talks with US Treasury yields hitting a one month high.

Its been a more upbeat mood here in Asia compared to overnight markets with everything outside China moving higher.

Via Damien Boey at Credit Suisse: Overnight, US 10-year bond yields surged by another 9bps.

By Chris Becker  Another mixed night on equity markets at least with currency markets stabilising going into tomorrow nights ECB meeting, with bonds selling off on the possibility of a cooling trade war with China.

While the usual safe havens are weaker, Asian share markets are still quite mixed with Chinese markets and their satellites falling back, while the Japanese bourses seemed decoupled and continue higher.

By Chris Becker  A mixed night again on Wall Street with concern over a no-deal Brexit easing slightly as Boris finds his deadline curtailed by Parliamentary law – so now he’s going to suspend it!

By Chris Becker  A mixed Friday on Wall Street with concern over a slightly disappointing US employment print sending stocks to scratch finishes, while interest rates the USD finished lower, although gold dropped against USD as well.

A sea of green across Asian share markets to finish the week in a mood of optimism as more “talks” about the trade war between US and China scare away the short sellers.

Via superbear Albert Edwards at Societe General: … my biggest Ice Age mistake was to assume that the US would be like Japan and that subsequent to the 2008 GFC, US policymakers would find it much harder to manipulate the economic and credit cycles.

By Chris Becker  Its all about trade talks again overnight with US stocks leading the charge, European stocks also surging while the FTSE retraced as a higher Pound Sterling and more Brexit chaos takes a toll.

A boost to optimism across risk markets today, following potential upside to the continued US-China trade talks, but this seems like a repeat of the last time!

By Chris Becker  Stocks came back on both sides of the Atlantic overnight despite a fall in USD, positive sentiment building due to the Hong Kong situation changing for the better, while Boris had another failure in his Brexit plans.

Outside of Hong Kong, it was a staid session across Asian stock markets today as risk tread water in reaction to the poor lead from Wall Street and the deepening Brexit drama overnight.