Australian Shares

The outright optimism from a finalisation of a trade deal between US and China yesterday has been switched to that of caution with most stock markets putting in scratch sessions in response to the stall on Wall Street overnight.

Via the excellent Damien Boey at Credit Suisse: Value rotation continued in earnest overnight, with sector-neutral value factors adding 0.7%, while momentum factors detracted 1.9%, and low-beta factors lost 0.5%.

By Chris Becker  Risk markets tumbled and the USD soared as data from the US suggested GDP growth is going to be softer than expected.

Outside of Australia, stock markets here in Asia are bursting in hope and optimism, with new record highs from Wall Street overnight translating into big gains across the region.

Via the excellent Damien Boey at Credit Suisse: Overnight, US equities rallied to new highs, bonds weakened and the yield curve steepened on positive trade headlines: US officials suggested that a deal with China is “almost there”.

Via Morgan Stanley: Morgan Stanley’s Research department is currently working on, and debating, what we think the market will look like in 2020.

There’s no stopping it now: Breaking out and now targeting record highs.

By Chris Becker  Its a night of record highs on Wall Street with both the NASDAQ and S&P500 gapping to new highs on the open, with US Treasuries selling off seeing 10 year yields almost reaching 1.8%.

Stocks rose across Asia as expected with the strong lead from Wall Street on Friday night translating into solid gains outside Japan, which was closed for a holiday.

Westpac has dropped an unadulterated profit shocker this morning: And this: Ouch.

By Chris Becker  The risk tone for the next month was set high and positive on Friday night as the latest US jobs report – the non-farm payrolls or NFP – beat expectations and previous prints were revised higher.

Today’s private PMI manufacturing print in China, combined with some stimulus talk in Japan and the usual “must cut rates” talk locally is seeing a small boost to Asian risk as we end the week, but not the trading session overall as more prudent traders wait for tonights US NFP.

By Chris Becker  Stock markets are taking a hit due to a triple whammy of events overnight, namely the impeachment inquiry vote in the US Congress, the stalled trade talks with China and the disappointing inflation data coming out of the PCE print.

Its the end of the month combined with the fallout from last night’s (early morning!) FOMC meeting and subsequent rate cut has been somewhat restricted to currency markets, but mainland Chinese stocks are pulling back in the wake of the disappointing PMI print, as the overall mood remains somewhat mixed.

The ANZ zombie has shuffled into view today with no profit growth: And why would there be with falling income?

By Chris Becker  Risk markets are still in a holding pattern awaiting the Federal REserve latest interest rate meeting, with the focus on German unemployment – spiking unexpectedly – and US GDP growth which disappointed looking through the headlines.

It’s all about the Fed as traders await the FOMC meeting tomorrow night with Asian stocks slipping alongside Wall Street overnight.

By Chris Becker  Quite a mixed night on overseas risk markets with European bourses slipping into the red while Wall Street is just holding on as tech stocks sell off slightly amid worse than expected corporate results.

Despite a very positive lead from Wall Street overnight, Asian equities fell back in the main, with Aussie stocks treading water for the second day in a row.

By Chris Becker  US stocks have surged to record highs on the hopes that trade talks will bear fruit soon with an official extension to Brexit stabilizing European markets.

A solid start to the week here in Asia, outside Australian stocks, with risk markets pushing higher from Friday night’s solid session on Wall Street and more weighing up on Brexit.

So says Morgan Stanley: Over the past few months, equity investors have received a lot of good news.

Stocks are flatlining alongside currency markets across the region  – if you look outside local risk markets – as the Brexit and US induced earnings swings from overnight dissipate into nearly nothing in terms of risk taking.