Australian Shares

Another mixed day here in Asia, unable to translate the positive overnight gains on Wall Street as the Yuan continued to stumble against USD.

Via the AFR: Magellan boss and Rich Lister Hamish Douglass is preparing for the possibility that the US 10-year Treasury yield breaks through 4 per cent in 12 to 18 months’ time, sparking a 30 per cent sell-off in global equities, should the US Federal Reserve find itself surprised by resurgent inflation.

Via the always corporate friendly Bartho today: The capital structure Wesfarmers unveiled for its soon-to-be demerged Coles business reflects a fine line between ensuring the supermarket group is true-to-label as an investment proposition while creating some discipline around how it will behave once it is free to act independently.

By Chris Becker There were no surprises on the manufacturing/services PMI prints overnight, although German manufacturing did better than expected which was possibly behind the resurgence in European stocks, but it was a lack of other catlaysts – and tweets from Trump – that staved off volatility.

A much better day here in Asia after the stuttering start on Monday, with almost all stock markets in the green, helped along by a resurgent USD as the Yuan plummets.

Could not agree more.

By Chris Becker The trading week had a better start in the northern hemisphere with US markets gaining on the back of tech and bank stocks, while Europe tread water.

This is why the MB Fund retains exposure to the US earnings boom: Internet giant Alphabet posted a significant earnings beat on Monday after the close, sending shares up more than 5%.

Via the AFR: ARCO fund manager George Colman says he is cautious on the Australian economy and is warning of a “slow-motion property market crash”.

A sputtering start to the trading week here in Asia with most stock markets having a bad day, except in China, while currency markets are reacting to Trumps ALL CAPS rant against Iran, sending the USD down.

By Chris Becker  Yet another extraordinary week in international relations as Trump parades across the globe upsetting friends, trashing major trade partners and embracing foes and dictators.

Caution reigns again in Asia after a poor lead from Wall Street overnight, with only mainland Chinese shares plus their Australian proxy in the green as the Yuan continues to be dumped.

By Chris Becker Trump tried to rub out the recent gains in USD by criticizing the Fed’s interest rate rises, causing volatility across currency and stock markets.

A strong unemployment print locally buoyed Aussie stocks as the rest of Asia sold off on the back of a much lower Yuan while the BOJ tapers its bond buying program.

By Chris Becker European bourses again led the confidence train on risk markets with tech stocks dragging down US stocks, even as Fed Chair Powell put forward an optimistic view of the US economy to Congress overnight.

Via Bloomberg: Emerging markets are poised to rally after more than $7 trillion in stocks slid into bear territory, according to three of the world’s largest money managers.

Outside China, Asian stocks extended gains after last night’s rally on Wall Street pushed on by comments from the new Fed Chair.

Weeo, weeoo, weeoo.

By Chris Becker The USD and stocks lifted overnight on the back of Fed Chair Powell’s comments over the strong US economy, which helped to overshadow the ongoing trade tensions.

As Trump trounces Europe and supports Russian hegemony, markets continue to run the concern thread over trade tensions, while pushing the hope barrow on stellar US corporate earnings to keep the whole risk edifice afloat.

Goldman has been terrible.

Asia finishes the week on a relatively upbeat note despite the continued trade war and ructions in Europe over Trump’s barnstorm visit.

By Chris Becker The overnight US CPI print didn’t put a rocket under the USD, coming in firm as expected as all eyes were on Europe with Trump’s NATO bashing taking the heat off any further barrages in the trade war.