Australian Shares

The AUD’s RBA stupidity premium is eroding this morning: Bonds are still hot stuff: The XJO bubble is still bursting: Big Iron has a little dead cat bounce going: Big Gas doesn’t: Is there hope yet for Big Gold?

By Chris Becker  The Fed has surprised and spooked markets by announcing an out of cycle rate cut, sending confidence down alongside bond yields, the USD and Wall Street.

The bounce continues although its only a half inflated ball, with Japanese shares lagging and US futures slipping going into tonight’s session.

When the touble starts, Dr Doom is never far away: DER SPIEGEL: How severe is the coronavirus outbreak for China and for the global economy?

By Chris Becker  Bouncy bounce bounce!

To the moon!

It’s all about the bounce today with either the start of the recovery or a dead cat bounce underway as all equity markets save the local ASX200 have seen positive results for the first time in a week.

Via Damien Boey at Credit Suisse: Last week, we updated our views on volatility.

The bloodbath sloshes on.

There are a few chosen bears around the place, via Bloomie: A decision to unload a big slug of tech megacaps in January sat poorly for a while with Andrew Slimmon, who helps run stock funds at Morgan Stanley.

By Chris Becker  Friday night saw an increase in intensity of selling, at least during the European session which some sanity prevailing on Wall Street eventually.

Well it’s been a fun ride this week and it continues with another 3-4% selloff across the board today as fear turns to panic.

The AUD has softened a bit this morning: Bonds are still deludedas the curve mysteriously steepens: XJO is plastered.

Nobody can take away from the astonishing success of Hamish Douglass.

The stock selloff deepened today in Asia as pandemic fears gripped markets across the region.

By Chris Becker  A modicum of stability arrived on equity markets overnight, but commodities – particularly oil – remain depressed, as bond yields continue to fall.

Asian markets continue their decline following the continued overnight rout on Wall Street, with local Australian stocks leading the selloff.

With predictable results.

By Chris Becker  Fear is gripping equity and risk markets with nothing but selling overnight although to put in context, the bubblish S&P500 is now only back to its December 2019 high!

Not quite the bath of blood on Asian markets although Japanese shares caught up to the fear over the weekend, while the usual buying of safe havens like gold and Yen abated somewhat as price was way overextended.

Via Damien Boey at Credit suisse: In our latest article “The virus in volatility” dated 24 February 2020, we formally increase our style tilt towards quality, and reduce our exposure to value.

By Chris Becker  A bath of blood on stock markets overnight with both sides of the Atlantic down a whopping 3-4% across the board!

Asian markets are not responding well to the weekend news, with non-mainland Chinese stock markets selling off broadly.

The untouchable Hamish Douglass of Magellan is tempting fate, at the AFR: Magellan’s house view is that there is an 80 per cent probability rates stay low for the rest of this cycle, and central banks will be prepared to let inflation run a bit before considering rate hikes.