Australian Shares

From UBS: US$ Earners – Reduced But Still Overweight A key portfolio theme for us has been our overweight to stocks that benefit from a weaker Australian dollar. In Australia’s case these are mostly overseas domiciled translation exposures with the US$ the dominant (and our most preferred) exposure.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets clearly ignored the pre-Thanksgiving performance of the US markets, with most markets rising strongly as concerns over the Middle East dissipated.

From Macquarie: In light of recent downward moves in the US$ gold price, the prospect of a US interest rate rise in December and the potential for a ‘normalisation’ of interest rates throughout 2016, we stress test our mid and small cap gold coverage universe.

by Chris Becker All the market action was in Europe overnight as stock and bonds were heavily bid on the rebound from the Turkey-Russia tensions, while US stocks tread water leading up to Thanksgiving season and Black Friday.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets followed Europe’s lead downwards as concerns over Turkey’s downing of a Russian jet seemed to add to ongoing market concerns.

From the McGrath prospectus via the AFR: Harcourts managing director Mike Green said the comparison was designed to make McGrath, a business based in Sydney’s pricey eastern suburbs, look good.

by Chris Becker A Turkey shoot overnight translated to a wobbly session in European stocks while oil spiked alongside other commodities as US dollar strength.

From Goldman: In many ways our 2016 forecast is “déjà vu all over again.” The US stock market has mostly traded sideways during 2015 with the index hovering in a narrow  band except for a brief late summer correction.

Chris Weston, Chief Market Strategist at IG Markets What if the markets’ investment script don’t prove to be correct?

by Chris Becker A dour evening for commodities, particularly Dr Copper, set the tone for global stock indices which fell slightly as the US Dollar continued to gain strength.

From UBS: Diversifieds: All else equal, our BHP & RIO earnings estimates for CY 16 would be 70% and 45% lower, respectively, under a spot scenario.

The fourth estimate of 2015-2016 capital expenditures will be released on Thursday and expectations are for them to increase 4.5% to A$120 billion from the third estimate.

Courtesy of The Australian: Stay Underweight the bank sector says CLSA’s top-rated banking analyst, Brian Johnson.

by Chris Becker A strong recovery in stocks last week after the terrorist attacks in Paris, with the Monday morning gap down filled and then some across most bourses.

Asian markets looked to be digesting their gains this week with fairly flat trade on Friday.

by Chris Becker The bull freight train stopped its tracks in America overnight as solid weekly initial jobless claims came in lower than expected, adding to US interest rate rise expectations.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The release of the Fed minutes overnight has provided the impetus for a strong Asian session.

Here’s why from Citi: Truly one the dumbest ideas in recent share market investing.

by Chris Becker The Fed minutes were the highlight of market action in the last 24 hours as the emboldened central bank announced rate rises are a go come December, signalling the economy is strong enough for a “little wafer”.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets are broadly positive despite a major renewed selloff in commodities overnight following a strong European session and a fairly flat US session.

The MSM has become obsessed with the notion that BHP is cheap.

by Chris Becker The relief rally in stocks in Asia continued overnight as European bourses soared to new highs on the back of higher economic sentiment but then hit the Stop sign when risk travelled across the Atlantic.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The Reserve Bank of Australia (RBA) minutes today provided further indication that without a major deterioration in economic activity the RBA is unlikely to ease rates further in the coming months.

Does anyone recall the Qantas bailout from eighteen months ago?

From Morgan Stanley: Dividend above the target payout ratio range: In April 2013, ANZ moved from a target “equivalent to 67% of cash earnings” to a target range of 65- 70% “with a bias towards the upper end of the range in the near-term” .