Australian Shares

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets It has been a day of record declines in Asia.

Cross-posted from The Conversation: As another corporate reporting season in Australia draws to a close, the broad trend has been moderately underwhelming earnings results, combined with a rise in the earnings repaid to shareholders in the form of a dividend.

Weoo, weeoo, weeoo.

by Chris Becker What a week that was!

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Global markets continue to decline…when will they stop?

The global economy is not well this afternoon as equities get flogged and Asian currencies tremble as a toxic cocktail of falling oil prices, deepening deflation, capital flight to the US and loss of competitiveness to a devaluing China hammers emerging markets.

Chris Becker is ill so this morning we have an able replacement in Chris Weston.

The ASX200 fell through support yesterday and appears headed lower, perhaps as a low as 5000: Meanwhile other developed economy bourses are flying (if slammed overnight): Against global metrics we’re being severely de-rated: So, what is happening here?

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets Asian markets have been flashing red today over concerns about further large declines in the Chinese stock market and uncertainty over the outcome of the release of the Fed minutes and US inflation data.

From The Australian: Deutsche Bank’s Aussie equity strategist Tim Baker says it is “not a good start” to reporting season.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets China: liquidity continues to evaporate With today’s unsurprising CNY fixing, volatility in the CNY appears to have been put back in its box.

Chris Weston, Chief Market Strategist at IG Markets This week, one of the key themes for me will be trading around a low volatility environment.

By Chris Becker A quiet night on Friday across both sides of the Atlantic as US industrial production printed stronger than expected, boosting interest rate expectations again as the Chinese PBOC continued to sooth market concerns about the Yuans depreciation.

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The People’s Bank of China (PBoC) CNY fixing announcement today was 6.3975, 35 pips stronger than the previous one.

Regular readers will know that MB has ridden the dollar-exposed industrials wave since late 2011 to some good effect.

Here’s some good advice for any punters out there desperate to get into Australian mining, from the AFR: The hedge fund, LIM Advisors, is currently raising $US400 million in total to invest in distressed situations in the Asia-Pacific region, founder and CEO, George Long, told the Australian Financial Review.

By Chris Becker Another devaluation of Chinese Yuan maybe the last as the PBOC took the Fed’s mantle as “market soother” overnight, claiming any further falls were unwarranted.

By Chris Becker The continued devaluation agenda for the Chinese economy is wreaking havoc among markets across the world again, with interest rate expectations from the Fed under threat – down to 40% from over 56% earlier in the week – sending the USD down against everything.

Chris Weston, Chief Market Strategist at IG Markets For the next two days, a lot of questions will be asked by market players about the trajectory of the CNY and what China exporting its deflation could ultimately mean.

By Chris Becker The sudden devaluation in the Chinese Yuan has set a shock wave through markets, with emerging stock markets, Asian currencies and commodities slumping on the news.

Chris Weston, Chief Market Strategist at IG Markets Big day today with CBA, CSL, NWS, CPU, OZL, PRY, CRZ, AGL reporting. On the data side we get Aussie Q2 wages (2.3% exp), Japan industrial Prod, China high frequency data at 15:30 (IP, retail sales, FIA) 11:15 is key though.

Chris Weston, Chief Market Strategist at IG Markets Today saw the biggest cut to the CNY fixing on record, with the People’s Bank of China (PBoC) weakening the CNY daily reference rate by 1.9%.

By Chris Becker A swing back to a positive mood overnight, possibly helped by acquisition news by Warren Buffet’s Berkshire Hathaway and a huge restructuring by Google, creating another company called “Alphabet” in the process that is likely to rule us all and drive all our cars.