Australian Shares

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Transurban pummeled by plunging traffic volumes

Toll road giant, Transurban, continues to be hammered by plunging traffic volumes from COVID-19: Toll roads operator Transurban has updated the market on the September quarter, unveiling an average daily traffic figure down 25.2 per cent for the period… Still, chief executive Scott Charlton said in a speech released to the ASX ahead of the

11

Macro Morning

Normal market price action in the absence of any key economic events would just hinge on the words of central bankers, with the latest FOMC minutes not shaking things up much, but instead it was backtracking on stimulus shutdowns that sent Wall Street surging once more on hopium. Wall Street lifted nearly 2% across the

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Macro Afternoon

It’s not been the red day for stock markets here in Asia that traders expected given the shooting off the mouth tweets overnight from Trump that sent Wall Street a flutter. Some walking back has seen some of the losses abated, with a positive response to the new Budget locally sending the ASX200 much higher.

5

Macro Morning

Risk took a nosedive overnight when Trump decided to play the biggest DickCard of political machinations, squashing any hopes of a stimulus package to help the American people (and Wall Street of course) before the November 3rd “election”. The USD immediately spiked against everything while Wall Street took back all its Monday gains with tech

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Macro Afternoon

It’s been another good green day for stock markets here in Asia with the USD remaining relatively weak against most of the undollars, except the Aussie which fell back on yet another boring RBA meeting. Gold is holding on to the $1910USD per ounce level, trading in a very tight range: The Hang Seng Index

11

ASX bath of blood parts for gold

The Australian dollar is firm this morning: Bonds are selling but nothing like the US as we approach RBA easing: Stocks have gone from a dire technical rollover to something more non-descript: Big Iron has bounced a little. I would buy this dip but I’m unsure if it’s over. We should have corrected deeper but,

10

How Biden suddenly became bullish for stocks

An important piece by ZeroHedge: The reason for the shift was simple: with poll after (Democrat oversampling) poll revealing a growing Biden lead, Wall Street analysts were given a simple task: prevent a disorderly selloff ahead of or during the elections. This culminated when none other than Goldman, which just days earlier had hiked its

5

Macro Morning

Risk is back with the double whammy catalysts of a much better than expected services PMI in the US, coupled with higher hopes of a US stimulus package (although it remains to be seen if anyone isn’t in quarantine due to the TrumpVirus) which saw Wall Street surge nearly 2% and the USD hit by

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Macro Afternoon

It’s been a solid start for risk assets here in Asia with Wall Street futures goosed by a Trump drive-by, thus lifting all other boats with big turnaround on stock markets. Meanwhile, the USD is gaining ground against most of the undollars, with gold retreating back below the $1900USD per ounce level: The Hang Seng

4

Morgan Stanley: A normal market cycle

Via Morgan Stanley: This Normal Cycle Of all the adjectives to describe 2020, ‘normal’ seems pretty far down the list. The year has witnessed a global pandemic and the worst quarter for global growth on record. Those emergencies produced the highest levels of government and central bank support ever seen. And beyond these obvious extremes

9

Macro Morning

Friday night saw two bigly events occur – the latest and very disappointing US jobs report, and the farcically unexpected admission that Trump caught the COVID. The latter sent risk markets into a spin late in the afternoon and combined both are providing large volatility spikes across stock, commodity and bond markets. Oil prices continued

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Macro Afternoon

  ^sorry can’t help it, but that’s the best meme I’ve seen in quite a while….and I picked it before I saw the news….engaging snowflake shields… It was going well enough, end of the week and US unemplyoment print coming up so markets were cautious already before the TrumpVirus news hit the wires, and all

3

Macro Morning

Overnight markets were relatively bullish overnight, although Brexit troubles gave Pound Sterling traders fits, while mixed economic data from the US and the lack of COVID-19 stimulus didn’t hurt Wall Street bouncing back.  Commodities diverged with gold shooting back above $1900USD per ounce while copper prices fell nearly 6% dragging oil futures down with it.

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Macro Afternoon

  With Chinese markets on holiday, and Japanese markets on the technical fritz, the mood is hard to gauge across Asian share markets despite the late lift on Wall Street overnight on more stimulus hopes.  The USD is weakening fast against the undollars, particularly the Aussie, but gold is really struggling to gain momentum here

15

Your diversification free lunch is not “all you can eat”

Nobel prize winner Harry Markowitz gets the credit for coining the phrase that “diversification is the only free lunch in finance”. Add the insight that stock markets are at least semi-efficient, and a multi-trillion dollar exchange-traded fund (ETF) industry was born.  And indeed, many exchange-traded funds are worthwhile investments, providing low-cost diversification. But some take

4

Macro Morning

A turgid twenty-four hours on risk markets as traders and bewildered algo’s absorbed the first US presidential debate debacle, with Wall Street finally lifting on more stimulus hopes which should translate into a somewhat positive mood here in Asia on the open. Last night saw two major releases, first German (and hence European) unemployment figures

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Macro Afternoon

  As markets continue to discount the shitshow that is the US presidential election, shares across Asia retreated with broad losses, as the very positive start on Monday becomes a distant memory. The USD is clawing back its recent losses on the risk aversion trade with gold moving lower to the $1886USD per ounce level:

6

ASX bath of blood runneth over again

The Aussie dollar continues to bet on Trump this morning: Bonds are selling a little: Stocks are down solidly: As Big Iron sags towards new lows: Big Gas too as oil is in all sorts with Libya returning: Big Gold is still consolidating: Big Banks are fast fading their criminal lending bounce and do not

0

Macro Morning

Last night saw a misstep in equity markets as the latest German CPI print shooting lower than expected, firmly into deflation territory on weaker demand, coupled with uncertainty over the next US fiscal stimulus package. The USD retreated as well with the Dollar Index down nearly 0.5% as Euro and Aussie dollar bounced back sharply

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Macro Afternoon

  A mixed message here in Asia with some advances, some losses and a lot of scratching around doing nothing with stock markets unable to translate the very positive start on Monday into something more substantial. The USD is basically unchanged too with a little bit of resistance from undollars like gold  which is still

11

Macro Morning

Last night saw the good start to the trading week in Asia translate into big gains across Wall Street and in particular Europe, with optimism surrounding the potential new fiscal stimulus in the US. Actual reality like the second wave of COVID-19 across the continent and in the ‘States as the northern hemisphere leans into

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Macro Afternoon

  It’s risk on and damn the torpedoes with stock markets surging after the weekend gap, starting with a very positive mood here in Asia. The USD is finding a little bit of resistance following its very strong run last week although gold is really struggling to get off the floor, opening down slightly to

8

Morgan Stanley: Buy the election correction

Via Morgan Stanley: The Waiting Is the Hardest Part Over the past month, several key risks to markets have surfaced, producing the first meaningful correction in this new bull market. More specifically, the S&P 500 dropped over 10% from its recent highs, led by the 14% plunge in the Nasdaq 100. Truth be told, I thought

2

Macro Morning

Friday night saw a surge on Wall Street despite a very disappointing durable goods order print for August, with all eyes on another stimulus package from Congress. Commodity markets were barely changed with gold and silver still under pressure from a strong USD, while in currency world the same applied with Euro hitting a new

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Macro Afternoon

The mixed mood on markets is moving to the positive side, outside of China, with most share markets here in Asia rebounding further than Wall Street did from overnight on the back of potentially more fiscal stimulus from the US congress.  The USD is in a very slight retreat after its big run against everything,

1

Macro Morning

Hopium is wafting back into risk markets as the possibility of another fiscal stimulus package in the US got Wall Street off the hook as it teeters on terminal support. Asian and then European bourses were falling going into the late session, but the S&P500 managed to eke out a small gain while the economic