Australian Shares

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Macro Morning

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. Wall Street has lost confidence coming up to the non-farm payroll/unemployment print

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Macro Afternoon

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 Shanghai Composite fell gain

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Macro Morning

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. A big reversal and increase in oil inventories sent both WTI and Brent down to weekly

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Macro Afternoon

It’s all about the Fed as traders await the FOMC meeting tomorrow night with Asian stocks slipping alongside Wall Street overnight.  An election in mid-December in the UK is keeping currency volatility high, although the Aussie brushed aside today’s CPI print, Swiss Franc and gold are falling going into the City open. The Shanghai Composite

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Macro Morning

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. Bond yields have fallen across the curve but also across all sovereign releases with the Australian dollar the

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Macro Afternoon

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. The USD fell back against Yen and the Aussie, the latter on a run due to Governor Lowe’s comments on interest rates this morning, while gold and

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Macro Morning

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. Gold fell below $1500USD per ounce while Bitcoin remains under $10,000 as USD lost ground against Euro and the Aussie dollar in the risk taking mood.

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Macro Afternoon

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. Bitcoin has surged to a new high on comments from Chinese authorities on blockchains, while gold is holding steady above $1500USD per ounce as

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Time for value over growth

So says Morgan Stanley: Over the past few months, equity investors have received a lot of good news. First, the Fed cut interest rates at the end of July. Next, the ECB announced it would restart QE in November, adding €20 billion per month for as long as it deems necessary. Two weeks ago, we

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Macro Afternoon

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.  Gold is steady above $1500USD per ounce, but not advancing while the Yuan remains in a holding pattern,

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Macro Morning

By Chris Becker  Tech stocks lead the way on Wall Street overnight as solid earnings overshadowed the ECB rate meeting which ended up a fizz with no substantive change. Commodity prices rose with gold particularly getting out of its funk, with oil prices continuing to move higher after breaking out post the latest inventory report.

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Macro Afternoon

Stocks are advancing across the region here in Asia although mainland Chinese stocks are struggling to make ground, as positive sentiment from US earnings overnight (notably Tesla and Microsoft) and a lower USD keeps risk spirits going. Commodity prices remain stalled as the oil price lifted overnight with bond yields also steady going into a

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Macro Morning

By Chris Becker  European stock markets led the charge overnight as Wall Street was relatively flat, despite a big lift in oil prices as US inventory data surprised to the downside. Other commodities were largely unchanged with gold not moving alongside iron ore while the USD weakened against most of the majors with Pound Sterling

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Macro Afternoon

Chinese bourses are dragging down the risk sentiment into a defensive mode given the late poor lead on Wall Street overnight, as the Brexit drama rolls on again. The possibility of an extension to Brexit to even early next year is providing a little bit of hope but both Euro and Pound Sterling are steady

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Quant quake 2.0?

Via the excellent Damien Boey at Credit Suisse: The “quant quake” is happening again. Overnight, and indeed, over the past week, we have seen a very sharp rotation into value factors and out of momentum factors. This follows on from the sharp rotation we saw from late August to early September. To be sure, there

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Macro Morning

By Chris Becker  Overnight risk markets were relatively stable due to the absence of any major catalysts or economic news, although Wall Street wilted later in the session as European stocks tread water. Only Pound Sterling stood out on currency markets, dropping as the UK Parliament voted for Brexit once more while bond yields also

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Macro Afternoon

A sea of green on stock markets across Asia although not as substantial as that on overnight markets, with Japanese bourses closed for a holiday providing a muddy picture to overall sentiment.  Commodities were relatively weak while currencies tread water as USD gained slightly. The Shanghai Composite was floating along and looked set to put

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Macro Morning

By Chris Becker  The USD gained strength overnight, with equity markets moving higher in Europe and then dragging Wall Street along with it as Trump suggested/lied about a possible “new” deal with Chyna. The Brexit chaos continued however, with Pound Sterling falling back on a possible confirmation of a delay on the exit, but its

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Macro Afternoon

A better than expected day on stock markets across Asia despite the poor lead from Wall Street on Friday night as the weakening in USD and co-ordinated volatility in currency markets abated on the Monday morning gap open. A lack of data throughout the session and later tonight is seeing some stability come back to

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Macro Morning

By Chris Becker  Friday night saw Wall Street lose further ground as the Brexit delay deal took over volatility on currency markets, sending the USD down against all the majors, except gold. Oil prices failed to reinforce the previous breakout with a big lift in inventories while renewed focus on the US/China trade war saw

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Macro Afternoon

Another mixed day on stock markets across Asia despite the solid lead from Wall Street overnight with currency markets relatively stable as the latest Chinese data came in better than expected. The Shanghai Composite failed to make good on the trifecta of releases, down nearly 0.6% going into the close at 2956 points while the

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Macro Morning

By Chris Becker  Wall Street took back its previous mild losses overnight while European bourses were hesistant to move forward despite a supposed “new deal” for Brexit and a possible ceasefire in Syria.  While US stocks gained, Treasuries gravitated around the 1.80% level again, as Brent and WTI crude oil prices lifted solidly on the

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Macro Afternoon

A somewhat mixed day on stock markets across Asia as the poor lead from Wall Street and the drop in USD overnight seeing sentiment shift from the positive mood at the start of the week. Today’s better than expected unemployment print saw the Aussie dollar jump while gold also rose among the undollar assets. The

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BofAML: Bearish fundies point market higher

Via BofAML: Tweeting the October Global FMS #bottomline: Oct FMS shows investor sentiment bearish despite credit & equity rally; if trade war and BREXIT fears unrealized in Q4 then macro can beat expectations validating our contrarian bullish view. #up-in-cash: FMS cash levels up to 5.0% from 4.7%, leaving BofAML Bull & Bear Indicator at an

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Macro Morning

By Chris Becker  Wall Street pulled back slightly overnight with a mixed Europe also weighing on positive sentiment as retail data disappointed and UK CPI came in lower than expected. Lack of news on a looming Brexit deal kept the continental currencies elevated slightly, while the US retail sales print saw USD flop, spiking Aussie

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Macro Afternoon

A generally positive day across Asian risk markets excepting mainland China, following the good mood on Wall Street overnight. The Australian dollar continued to tank following yesterday’s release of the RBA minutes while the NZD was relatively stable despite an uptick in monthly CPI.  Yen strengthened slightly after a big breakout in USD strength overnight