Australian Shares

From the excellent Jonthon Mott at UBS: A week is a long time… Now incorporating an Australian recession and QE Given the rapidly deteriorating environment, UBS has further reduced our economic outlook.

It is getting pretty damn impressive now.

By Chris Becker  Panic has set in on risk markets around the world with shares suffering their worst one day loss since 1987 as Wall Street plummets 10% in a single session.

This is not advice, it is commentary.

It’s getting ugly out there with the ASX200 having its worst day since 2008, falling nearly 8%, while other Asian equities are off by about half that as Trump enacts a European travel ban.

The Aussie dollar is still under pressure this morning: Bonds are still selling.

By Chris Becker  Fear is back as another packed night of volatility where the WHO declared the coronavirus a pandemic, Wall Street lost its shi(r)t, while bond markets went haywire and actually sold off with a big jump in still-depressed yields.

Well that was a short lived bounce, as risk assets fall across the region despite more fiscal and monetary stimulus nods and suggestions overnight.

By Chris Becker  Fears are fettered with fiscal fiddling overnight with the rebound in Asia extending into the US session, although European bourses remain extremely nervous and put in scratch sessions.

Well here comes the bounce, with risk assets suddenly coming back to life as happens in major retracements when there’s no one left to sell too.

Let’s recall once more how the mighty have fallen.

From the excellent Damien Boey at Credit Suisse overnight: Overnight, we saw another incredibly sharp sell-off in equities, while volatility spiked.

By Chris Becker  Everything is fine.

Well hasn’t this been an interesting day?

By Chris Becker  Markets almost brushed aside the strong US jobs print on Friday night and continued to hasten their retreat from risk taking with European bourses falling to a new yearly low, while Wall Street stumbled into the close with a near 2% loss.

Well here with go again with more selling as the dead cat rolls over on Wall Street, knocking out the line of dead cat’s here in Asia (or is it just a flesh wound?) with stocks sold off across the board.

The Australian dollar’s RBA stupdity premium is alive and well this morning: Bonds are heavily bid anyway knowing that the stupidity is on a short fuse: XJO is at new closing lows: Big Iron is down with BHP most heavily hit: Big Gas is flared again.

By Chris Becker  Markets are being spooked again by the coronavirus with US stocks pushed sharply lower over a spike in US cases overnight, sending the USD and bond yields down with them.

The Australian dollar has been unable to add to the RBA stupidity premium this morning: But bond markets have, getting absolutely flushed: XJO has rallied in forced madness from Wall St: But S&P futures are down again: Big Iron is fixed!

By Chris Becker  The Fed surprise has turned into a Super Tuesday surprise with the promise of a moderate Democrat in the form of VP Joe Biden boosting Wall Street’s hopes that no stinking socialist will grace the White House anytime soon.

The bounce stumbled overnight but has continued here in Asia as the news of the Federal Reserve’s surprise rate cut in the wake of the economic impact of the coronavirus has been absorbed without the fear on Wall Street.