Australian Shares

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets After a heavy selloff yesterday, Asian markets welcomed the upbeat leads from US and European markets overnight.

by Chris Becker A broad selloff in Asian stock markets on the back of a poor Chinese manufacturing PMI did not translate into falls on European or American stocks as their respective PMIs came in stronger then expected.

From The Australian: McGrath Estate Agents is selling shares in its float at between $1.80 and $2.25 each, creating a real estate chain with a market value of between $254 million and $295.7m [with a dividend between 3.6% and 4.1%].

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asia has not got off to a good start in November with Australian and Japanese markets seeing the worst of the selling from the open.

by Chris Becker Friday’s session in the US was characterised by profit taking as apart from the European CPI prints, there was no large economic prints to move markets.

I suggested sarcastically in my calendar review at the end of yesterdays Macro Morning that last night was going to be “quiet”, what with a slew of very important data across both sides of the Atlantic.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets A new sentence in the Fed monetary policy statement has put a December rate hike by the Fed back on the table. G10 currencies slid against a resurgent USD, while the worst was left for emerging market (EM) currencies.

Well there it is, no rate rise from the Fed overnight, but an indication that future rate rises – as early as December – are coming.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The bond market pricing for a Reserve Bank of Australia (RBA) rate cut on 3 November jumped from below 30% to 61% after Australian Q3 CPI came in below expectations.

A shaky start to the week that will culminate in the long awaited FOMC Meeting overnight, followed by a slew of very important CPI prints that could shake central banks out of their deflationary stupor.

From UBS: Mixed Messages On Valuations With the recent rebound in the index the aggregate market P/E has once again pushed back above long term average levels (currently 15.2x versus LTA of 14.5x).

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets are clearly unwilling to rally past the recent highs they set last Friday ahead of the Fed and Bank of Japan (BoJ) meetings.

By Chris Becker After the euphoria of Friday night, and with next to no economic reports or news to go on, risk markets went nowhere on the Monday open, with most stock markets having scratch results as USD strength weighed.

Bring it, from the AFR: As first reported by Street Talk Online on Monday, Bell Potter analyst Chris Savage put a $266 million to $315 million enterprise value on the business, which implied 8.6-times to 10.2-times forecast 2016 financial year EBITDA, and said the equity value was $276 million to $325 million.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets look primed to rally further if the Fed and Bank of Japan (BoJ) meetings go their way this week. In the wake of the European Central Bank (ECB) and the People’s Bank of China (PBoC) announcements, markets rallied strongly.

By Chris Becker The magic continues as China cuts rates and stocks soar on the short term euphoria, following the ECB waving of wands and casting a spell on risk markets.

China joined the ECB with more easing late Friday with another 25bps rate cut and 50bps RRR cut, predictably, US stocks injected the drugs and rallied further.

Angus Nicholson for Chris Weston from IG markets.

By Chris Becker A flat session in Asia exploded in Europe as Mario Draghi at the ECB said it would consider adding to its QE program and extend it past the September 2016 deadline.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Was it concerns about Sinosteel missing its interest payment?

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Poor leads from the US and European markets were predicting a fairly negative open for Asian markets today.