Australian Shares

By Chris Becker Absence makes the heart grow fonder or something like that.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Today’s Chinese CPI essentially guaranteed further cuts to the interest rate and the reserve requirement ratio (RRR) before the year is out.

From Domainfax comes Morgan Stanley: “We believe [global economic] expansion is still in tact, with strong consumer trends in developed markets helping to offset the drag of [emerging markets] growth,” Morgan Stanley said in its updated Autumn Outlook paper.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Markets and currencies started to weaken from the open as nervousness about the Chinese trade data was heavy in the air.

Chris Weston, Chief Market Strategist at IG Markets Assessing price action, behavioural analysis and fund flow data will be key.

Lol, there’s always an upside in sell side land, From The Australian: Increasing risk in house prices could trigger a shift in asset allocation away from property, and significant sector rotation within the equity market, as investors seek to diversify away, or protect themselves against housing risk, according to Credit Suisse.

By Chris Becker The hope rally continues as Chinese markets come alive from their week long holiday, a holiday that has been reinforced by Fed watchers grasping at straws that the Fed will hold another month before pulling the rate rise trigger.

Angus Nicholson for Chris Weston at IG markets.

By Chris Becker And we’re off!

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The better-than-expected PMI numbers and the range of new policies announced, from easing property down payments to lowering the tax rate on new car purchases, helped boost H-shares 10.5%.

There are lots of value analyses floating around today hoping for an end to the commodity bear market.

By Chris Becker The near week long bounce in equity markets continues but is starting to look stretched as bonds remain cool and commodity watchers wait for Chinese markets and sentiment to re-open today.

Chris Weston, Chief Market Strategist at IG Markets If we focus specifically on the European open, then the recent positive price action should come to a temporary halt.

By Chris Becker Stock markets were relatively quiet last night with modest gains in Europe offset by weakness in US stocks on the back of a worse than expected trade deficit.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The Chinese PMIs seemed to have eased fears that the economy would collapse while the US non-farm payrolls (NFP) numbers have pushed back the likely date of a rate rise by the Fed into 2016.

The hysterical rally in global resource stocks in nicely illustrating the sense in the MB strategy for dealing with this bear market.

From Citi: Poor capital allocation has been one of the key reasons for the significant underperformance of the sector over the past few years, which was fuelled by strong cash generation in the supercycle with lower propensity to give cash back as shareholders were probably chasing growth rather than yield.

By Chris Becker A typical and not unusual bear market really on risk markets following the poor US unemployment print on Friday due to hopes – and hope alone – that the Fed will hold off on a 1937 style repeat and raise rates anytime soon.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Global macro forces are digesting the very poor nonfarm payrolls (NFP) numbers out on Friday.

Chris Weston, Chief Market Strategist at IG Markets We’ve been pushing the idea that the market wants clarity before staging a rally of some sort.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets There has been a growing feeling in the markets that while the global outlook has dimmed somewhat, the current virulence of the selloff was somewhat overdone.

By Chris Becker Its all about the shorts in risk markets, with the inevitable big bounce after some very oversold action coupled with the end of month and end of quarter rebalancing.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets After the dramatic selloff seen in the region yesterday, markets were primed for a bit of a bounce today.

By Chris Becker After a bloodbath (I prefer bath of blood) in Asian stocks yesterday, risk surged on London’s open sending European stocks higher and futures rebounding on a wave of short covering.