Australian Shares

Chris Weston, Chief Market Strategist at IG Markets There seems to be a calming of nerves and a slight change in the atmosphere surrounding those active in financial markets.

The banking and mining dead cat is bouncing again though certainly not with a whole lot of conviction.

by Chris Becker So did anyone buy VIX options knowing I was going on holiday last week? With alarming regularity whenever I walk away (by design or bad luck) from the trading screen, shit happens.

My old sparring partner, Jonathon Shapiro at Domainfax, today takes on bank funding costs: Australia’s banks have been caught up in indiscriminate selling.

From Russell Clarke, Chief Investment Officer, Horseman Capital (via Zero Hedge): My wife and I went see to the “The Big Short” the other day.

For several years now MB has warned fund manager Allan Gray that it is headed the wrong way, from Domainfax: There aren’t many investment firms that have had as tough a time in recent years as Allan Gray.

Chris Weston, Chief Market Strategist at IG Markets The tone in Asia has generally been downbeat, with Japanese equities taking an absolute bath on volumes 120% above the 100-day average.

From Credit Suisse: Global central banks are increasingly adopting negative rates to support growth and hold off deflation.

The Sykesnado continues to shred shares as banks, miners and gas all fall.

We’re sorry.

Deutsche Bank has a very good take on CBA today (and a Hold rating): Defensive qualities on show but PE rel vs peers very elevated CBA’s 1H16 result was somewhat of a mixed bag.

Chris Weston, Chief Market Strategist at IG Markets Asian markets have fallen once again, although without quite the same ferocity we saw in yesterday’s bloodbath and there is some buying coming back into the Australian equity markets, presumably short covering.

From Citi comes a preview of Janet Yellen on Capital Hill tonight: Yellen testimony meets policy ineffectiveness meets ‘sell everything’ mood Fed Chair Yellen will confront political, asset market and Fed demons at her testimony this week.

The ASX200 is now officially in a bear market for the trivia lovers out there down 20.8% from the peak and in free fall down -2.5% today and crashing with the Nikkei: Supports are at 4600, 4000 and GFC lows.

From Watermark Funds Management’s investment via The Australian on the CBA result this morning: Cash earnings came in ahead of estimates “Cash earnings grew by 6% sequentially and 4% on the prior corresponding period and came in 1% ahead of consensus expectations.

Chris Weston, Chief Market Strategist at IG Markets It’s been a day of trauma for the equity bulls and for many the towel has been thrown in.

Chris Weston, Chief Market Strategist at IG Markets There seems little doubt that we have reached a key juncture for the world’s financial markets and if confusion wasn’t at fever pitch two weeks ago then things are even worse now.

From CLSA: EPS downgrades means multiples need to expand again If recent revisions set the tone we’d expect a disastrous reporting season.

A couple of charts today from Morgan Stanley suggest strongly that if the Mining GFC intensifies again, which we expect it to, then Australian shares are more in the firing line than just about anywhere else: Yes, that’s little Aussie shares down there at the bottom below DM and EM.

by Chris Becker A second day into the inevitable rebound in commodity prices as the USD remains in a weakening trend, although oil bucked the overall bullishness and whipsawed violently again.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets China’s FX reserves for January will be released 7 February, and whatever the number it looks like it will be causing some volatility in the offshore CNH.