Australian Shares

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Bonds boom as ASX struggles

The AUD is roughly flat through the morning: Bonds are threatening to break out as the bid booms. Pleased to report we went long a fortnight ago: And the ASX struggles: Dalian is flat: Big Iron is mixed: Big Gas is sinking again. Spot regional LNG prices are now sliding with oil: Big Gold is

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Macro Morning

By Chris Becker The positive outcome from the weekend G20 summit continued overnight after making stocks and risk currencies gap on Monday morning. US Treasury yields fell below 3%, with interest rate futures still indicating an 80% chance of another Fed hike in December, with added confirmation as the latest ISM manufacturing print surprising to the

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Macro Afternoon

The weekend’s G20 meeting with the trade war truce between China and American has seen some big gaps up in risk assets, with Chinese stocks in particular rallying hard. The Australian dollar has been a big benefeciary, gapping up against all the majors and crosses, as has the Kiwi with the Yuan weakening considerably. The Shanghai

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Macro Afternoon

Outside Australia it’s been a good finish to the week on stock markets across Asia as aniticpition builds for the Trump-Xi meeting at the G20 conference this weekend. The Chinese manufacturing PMI came in bang on no expansion, which may have been behind some of the lack of confidence on Australian markets. The Shanghai Composite is up

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Macro Afternoon

A fairly muted response to the big surge on Wall Street overnight here in Asia today, with modest gains outside of China, while the Middle Kingdom share markets suffered a small setback. The USD continued its selloff however, especially against Yen and Kiwi, while the Aussie dollar remains above 73 cents. The Shanghai Composite is down 0.3% to 2594 points

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Fed hands ASX a dead cat

AUD is down during the morning after the big spike: Bonds are bid again: XJO is up meekly: Big Iron is up and away. I still think RIO is fundamentally well positioned and hope that head shoulders top dissipates! Big Oil is up, wrongly. OPEC looks ever more snookered by Kashoggi meaning oil must go

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What to buy under a dovish Fed

Via Damien Boey at Credit Suisse: In our recent note “Style rotation after a panic”, dated 31 October 2018, we highlighted that for this stage of the risk appetite recovery cycle, value has been underperforming badly as a style, while quality has been significantly outperforming. The performance gap has not really narrowed in November. Overnight,

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Macro Afternoon

Outside Australia, it’s been a good day for stock markets across the region with currency markets relatively quiet leading up to an important speech by Fed Chair Powell tonight, which is likely to involve some twitter dribbling in response from Trump. The Shanghai Composite is up 0.7% to 2592 points going into the close, perhaps finally making some

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Fundie: Housing correction “just getting started”

Via the AFR comes T Rowe Price’s head of Australian equities, Randal Jenneke: The fund manager’s base case view sees house prices falling by between 10 and 20 per cent, but outside factors such as the 2019 federal election could escalate the downturn. “The Labor Party wants to change a lot of policies around negative

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Macro Morning

By Chris Becker Despite Trump’s endemic foot-in-mouth disease, stocks ended slightly up last night on hopes of a Chinese-US trade deal, while Brexit concerns kept European bourses depressed. Treasury yields lifted slightly while the USD remained strong against most of the majors. Recapping Asia’s session yesterday where the Shanghai Composite was unchanged, finishing at 2574 points after being up

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Macro Afternoon

No big news to move stocks around here in Asia, just a series of headlines over Chinese trade, Brexit and local politics to get through another trading day. Interestingly, the CBOE has increased oil future margins, which is a case of closing the door after the horse has bolted, while the latest New Zealand trade

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Macro Afternoon

A weekend without much bad news has translated the poor showing on Wall Street to a buoyant day on stock markets here in Asia today, with just the local Australian markets suffering. The PBOC loosened the Yuan fix substantially while the failing Bitcoin had a big bounce this morning. The Shanghai Composite is down 0.3% to 2572 points

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Macro Morning (Trading Week)

By Chris Becker  Looking at Chinese stocks first, where last week saw the Shanghai Composite failed to stabilise above tentative support at the 2600 point level, having started the week nearer 2700 points. The bearish bias remains as momentum continues to suggest another downturn here in the wake of the Chinese/American trade negotiations: Japanese stocks are wilting here

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Macro Afternoon

A very mixed day here in Asia with Japanese markets closed and not much else happening due to the US holiday overnight, although oil prices have already retraced and Chinese shares are off due to domestic concerns via the PBOC of a slowing global economy. The Shanghai Composite is down over 2% to 2579 points going into the

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Macro Morning

By Chris Becker With the US Thanksgiving holiday, markets were relatively quiet overnight, although European bourses suffered from the continued lack of confidence on the Brexit saga, with a new summit scheduled this weekend. Pound Sterling jumped regardless while other currencies were basically unchanged as oil prices remain depressed. Recapping Asia’s session yesterday where the Shanghai Composite

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Macro Afternoon

Asian stocks have been mixed throughout the session today as trading volume dries up in preparation for the US Thanksgiving holiday as risk sentiment remains fragile. The USD kept up the bid with the Aussie and Kiwi dollar pushed lower while Yen buyers stepped in slightly, not affecting Japanese shares. The Shanghai Composite is down a few

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Macro Morning

By Chris Becker Risk markets stabilised somewhat overnight with US tech stocks leading a slight recovery on Wall Street while oil prices stopped falling and US Treasury yields blipped a few points higher. Major currency pairs also had a small bounceback although this fizzled in the latter half of the session, with Pound Sterling remaining

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Macro Afternoon

Asian stocks didn’t perform as badly as predicted, still losing ground but not in the magnitude of the falls on Wall Street and the continent overnight. The falls in the antipodean currencies – Aussie and Kiwi – were mitigated this morning while oil looks like finding a potential bottom after the bath of blood from

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Woe is XJO!

AUD has been struggling through the morning: Bonds remain bizarrely mis-priced: As XJO takes a tumble to two year lows: Big Iron is hit: As Big Gas collapses (happy we exited WPL last week!): Big Gold is soft: Big Banks down again: And Big Realty: Woe is XJO!

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Macro Afternoon

Following the rout in tech stocks in the US overnight, Asian bourses have fallen throughout the session as risk appetite dissapates. Governor Kuroda at the BOJ has ruled out any further easing of its negative interest rate policy which kept Yen relatively stable while the Aussie dollar fell on the latest RBA minutes. The Shanghai Composite is