Australian Shares

Markets are in a mixed mood as we head into the European session as Brexit, Itali-exit and Tianneman Square Part Deux demonstrations put a damper on risk appetite, with most stock markets off while the USD remains firm against most of the majors.

By Chris Becker  Trade war concerns are still weighing down on risk sentiment across global markets with Wall Street falling over 1% to start the trading week on a bad note, as everyone watches dead cat bounces develop on their charts.

A much better than expected start to the trading week here in Asia with the PBOC keeping the Yuan very weak, still well above the 7 handle against USD, with most stock markets putting in light rises or scratch sessions.

By Chris Becker  Friday night saw the return of the short sellers and the end of what looked like a sustainable bounceback in equity markets.

A mixed day to end the trading week here in Asia with the PBOC keeping the Yuan nice and weak, still well above the 7 handle against USD, with most stock markets putting in scratch sessions.

By Chris Becker  The short sellers are getting wiped out as stability turns into dip buying overnight on Wall Street and in Europe rebounding solidly.

A much better day here in Asia as Yuan stabilises and risk sentiment improves from overnight markets.

Via BMO Capital Markets: There are moments of inflection in the market when the phrase ‘prices have changed more than the facts’ becomes particularly apropos and today’s Treasury rally ostensibly qualifies.

By Chris Becker  More stability overnight on Wall Street with European markets also rebounding, while interest rates also rose on the better risk sentiment, the oil price fell again as the DOE inventory report underwhelmed.

A mixed day is better than an across the board selloff with shares here in Asia putting in scratch sessions and some advances.

Via UBS: The tepid signs that global growth was bottoming are likely to be overwhelmed by the negative shocks from rising trade tensions.

Via Damien Boey at Credit Suisse: Equities are selling aggressively and bonds are rallying on the back of recent escalation of trade wars.

By Chris Becker  Some stability returned to risk markets overnight with the inevitable bounceback after so much selling, mainly due to the Chinese Yuan finally stabilising, lifting the USD and dragging equities with it.

A slowdown but not a cessation of selling activity in stocks across the region today, with currency and bond markets closely watching the Yuan fix for stability.

Via the excellent Damien Boey at Credit Suisse: Investors are rightly concerned that trade wars are getting out of control.

By Chris Becker  A bath of blood on equity markets overnight as the US/China trade war deepens with US stocks falling around 3% across the board, now wiping out all the nominal gains for the year.

As expected, it hasn’t been a good start to the week for Asian stock markets as the new round in the US trade war with China squashes all evidence of confidence that had been building up previously.

Via Morgan Stanley: Don’t Blame the Fed or Trade – It’s the Fundamentals Rarely has the adage “Don’t fight the Fed” been more apropos than over the past 18 months.

By Chris Becker  The end of the northern hemisphere summer break usually spells doom and gloom on risk markets, and that’s where the mood takes us at the moment with Friday nights US unemployment print unable to shake confidence back into the complex.

Asian stock markets are not liking the new round in the US trade war with China with falls across the region as Yen buyers step in on the safe haven and the Australian dollar is wallopped on the commodity selloff while the Yuan has sold off to a new monthly low.

By Chris Becker  The tweeting Twit-in-Chief put another spanner in the trader war spat between the US and China overnight with more tariff threats pushing the commodity complex over the edge, sending iron ore, oil and other hard commodities down sharply, taking stocks with them.

Most Asian stock markets are off today in response to the “too-dovish” Fed mood overnight, although Japanese bourses barely managed a scratch session due to a much weaker Yen.

By Chris Becker  It was all about the Fed overnight where at their July meeting, a 25 bps “insurance cut” rattled markets instead, with US stocks losing more than 1% and sending the USD higher against everything.

Trump is putting his foot into the trade war mouth with more rhetoric overnight that has startled markets again with most Asian equities stumbling today.