Australian Shares

43

ASX at the close

By Chris Weston, Chief Market Strategist at IG Markets US equity markets continue to power ahead. Given the current momentum, we could see the September (and all-time) highs being tested fairly soon. A sense of calm has descended on the capital markets once again. It seems the volatility we saw a couple of weeks ago is

7

Macro Morning: BTFD

By Chris Becker Rallies across the board in US stocks with the benchmark S&P500 up over 1.2% at 1985 points continuing its sharp rebound and reinforcing the algo “buy the dip” which has worked for nearly 5 years now: Other bourses were up even higher, with the Russell 2000 up nearly 3% and the Nasdaq

13

ASX at the close

Stan Shamu for Chris Weston, Chief Market Strategist at IG Markets We’re seeing some disjointed moves in Asia today, with a degree of consolidation the dominant theme. China is positive helped by a recovery in industrial profits while the ASX 200 is a touch weaker as the materials and banks cancel eachother out. The leads

9

Macro Morning: QE Jitters

By Chris Becker As we near the end of the Fed’s QE3 program, risk markets are getting the jitters again, particularly bond markets were spreads are widening as liquidity dries up. In Europe last night we saw the closely watched German IFO survey come in well below expectations as optimism around the Euro-powerhouse economy falters.

10

ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Asia equities had been looking fairly upbeat, pricing in the lead from both Europe and Wall Street until news broke that Ebola had made its way to New York. S&P futures have pulled back, with traders concerned that the Ebola patient had travelled on the subway from

0

Macro Morning: Bulls return

By Chris Becker Following the steady (if internally weak) flash PMI in China yesterday, European markets absorbed the German, French and EZ wide PMI prints last night without any surprises and risk returned. Continental markets were up over 1% while the FTSE could only rise 0.3% but futures were bid following the US lead: The

85

ASX at the close

Stan Shamu for Chris Weston, Chief Market Strategist at IG Markets FTSE 6360 -40 DAX 8874 -66 CAC 4073 -32 IBEX 10168 -82 MIB 19105 -161   Equities have pared back some of the recent gains with a sense of caution prevailing after a couple of events in US trade spooked investors. While the majority

5

Can cost-out save the ASX?

Deutsche thinks so: FY14 marked a return to earnings growth for Australia, following two dismal years. But there is concern that much of the growth was driven by efficiency programs (6% EPS growth on 3% sales growth), which aren’t a sustainable driver of earnings. And with little sign of a top-line acceleration, the fear is the earnings recovery could

4

Macro Morning: Oil slide

By Chris Becker Mixed is the best one can spin last night’s actions on markets as a lack of follow through from the four day rebound rally in risk could mostly be explained by a neutral CPI reading in the US, coming in as expected but in the “danger zone” well below 2%.  Across the Atlantic,

9

ASX at the close

Stan Shamu for Chris Weston, Chief Market Strategist at IG Markets Asia has picked up the positive leads from European and US trade and rallied, with equities erasing some of the recent sharp falls. The rally in global markets began in European trade as investors reacted to reports the ECB is looking to add corporate

8

Enjoy the great ASX de-rating!

UBS is one of those sensible sell side shops that has been pushing ideas similar to my own post-2011 allocation thoughts for Australian shares in positioning for the falling currency and slowing China: Correction Restores Some Value Since our last rebalance in early September the Australian market experienced a 9%  correction before bouncing just over 3%

6

Macro Morning: Pay day!

By Chris Becker We saw the definite return of risk on markets last night, with near 2% rises across the board on major stock markets. For trend traders it doesn’t get much more beautiful than this chart of the S&P500 futures below: If we zoom out to the dailies its another splendifirous and classic chart

4

ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Earnings are having a greater role in market sentiment, with poor earnings from SAP, Phillips and IBM putting some focus back on fundamentals. Apple’s solid post-market result is keeping NASDAQ futures supported, which is just as well as Asian markets have shown limited signs of life. For

7

Macro Morning

By Chris Becker The expected rebound in risk continued last night after the usual weekend gap, with US stocks surging around 1% as the US dollar weakened. With no major economic data releases last night, there weren’t any catalysts to upset the rebound following this months QE-ending correction on risk markets. The S&P500 finished above

13

ASX at the close

Stan Shamu for Chris Weston, Chief Market Strategist at IG Markets Asia is off to a solid start to the week, with the stars starting to align for equities yet again. After a sharp pullback recently, investors appear to be regaining confidence that we may have seen a bottom for now. Sentiment is vastly improved

32

ANZ is wrong on bank capital

By Leith van Onselen ANZ Chief, Mike Smith, has warned that Australia’s Big Four banks risk becoming “globally uncompetitive” if they are required to raise capital levels to withstand external shocks. From The Canberra Times: Mr Smith said despite concerns around the housing market, there was no need to raise the amount of capital banks

5

ASX at the close

Chris Weston, Chief Market Strategist at IG Markets With some calming words from the Federal Reserve it seems as though we just might see a short-term break in the bout in volatility. I only see it as a negative that St Louis Fed president James Bullard would advise the central bank to consider delaying its

13

Macro Morning

By Chris Becker Another night of volatility, another night of almost capitulation before the brave bulls stampeded prices back to near opening levels. Here’s the short term picture on US stocks, with the S&P500 following European markets down before the cash open, matching yesterdays bottom before rallying up to 2-day resistance: That resistance (the upper

4

ASX at the close

Stan Shamu for Chris Weston, Chief Market Strategist at IG Markets Asia predictably started the day lower as the region reacts to the carnage seen through European and US trade. However, the recovery seen in US markets off the lows has played a key role in Asia and seen some markets manage to come off their

29

ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Judging by the early moves in Australian resource names, you may think traders have seen the lows in commodity prices and global growth concerns have troughed. Fortsecue Metals has now rallied 15.5% from its low in the last three days, although was up as much as 22.5%

25

Future Fund shows punters the way

From The Australian: The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in

3

Macro Morning (oil bash)

By Chris Becker A relatively quiet night on the markets where a series of dour economic data from Europe, including the closely watched German ZEW sentiment survey came in sharply negative, and Euro-wide industrial production confirming a slowdown with drop of nearly 2% over the year. Stocks were flat first in Europe, where the FTSE