Australian Shares

61

Macro Afternoon

Share markets in Asia are losing their optimism midweek as traders prepare for the non farm payrolls on Friday with the background of flailing manufacturing and a lower energy prices not helping risk appetites. The Shanghai Composite has fallen over 1% to just above the 3000 point barrier, barely holding on to its previous bounce-back. The Hang

0

Macro Morning

By Chris Becker  Another board full of green with US and European stocks lifting overnight alongside Treasuries as the 10 year yield dipped below the 2% mark on some very dovish comments coming from the central bank wonks as the global manufacturing slowdown gathers pace. Gold saw a resurgence as USD fell slightly against the

31

Macro Afternoon

Share markets in Asia are mixed today despite the green board across other risk markets overnight, as traders look for more clues and innuendo surrounding the trade war truce between the US and China coming out of the G20 on the weekend. In other words, don’t trust a word either side has said and verify…

0

Macro Morning

By Chris Becker  With the trade war truce in place, equity markets gapped higher overnight with US stocks hitting a record high as traders piled all in, despite the worrying signs across the globe as manufacturing rolls over. The USD in particular soared higher against everything, while interest rates were relatively quiet as the 10

51

Macro Afternoon

The G20 and the trade war truce between China and the US has lifted risk spirits despite a slew of very poor manufacturing PMIs released in Asia today. The Yuan has jumped against USD with the USDCNH at a near three month low while the Aussie dollar has tanked on the Chinese PMI print, Yen

1

Macro Morning

By Chris Becker  Friday night saw the return of confidence as the G20 meeting got underway in Osaka, with hope surrounding some sort of outcome of the trade spat between the US and China. Stocks on both sides of the Atlantic rose while currencies were relatively flat as oil, gold and Bitcoin in particular had

42

Macro Afternoon

Despite the positive lead from Wall Street, Asian markets are very cautious going into the G20 summit this weekend in Osaka, with traders awaiting the foot in mouth US President to probably foul up the talks. The USD has barely moved, while the Aussie has briefly peeped over the 70 cent level as local stock

0

Macro Morning

By Chris Becker  Hope is rising on risk markets that this weekend’s G20 summit – more rightly a G2 summit between US and China – will result in some sort of ceasefire at least over the trade war. US stocks rose while European bourses slipped despite a higher German CPI print. The USD was largely

63

Macro Afternoon

Despite the mixed lead from Wall Street overnight, sentiment has risen here in Asia with more positive comments surrounding Chinese trade talks as the G20 approaches. The Shanghai Composite has bounced back to life, up nearly 0.7% and almost over the 3000 point barrier while the Hang Seng Index has advanced much further, closing nearly 1.5%

33

$175bn Pyne takes more dough

Via the ABC: Christopher Pyne’s new job has put his old boss, Scott Morrison, under pressure to reprimand him amid accusations it is a breach of ministerial standards. Mr Pyne, who was defence minister until the election, yesterday revealed he has taken a job as a defence consultant with multinational business advisers EY. “I am looking forward

0

Macro Morning

By Chris Becker  Two major factors are keeping markets enthralled at the moment, resulting in scratch sessions for stocks and the usual normal oscillation on currencies. The outcome of the Trump/Xi trade talks this weekend and the too-dovish expectations that the Fed will cut aggressively next month, with Treasuries rising again as interest rate cuts

79

Macro Afternoon

Asian stock markets haven’t reacted at the same level as Wall Street’s falls overnight, with some moderate buyers stepping in as Treasury yields lift a little higher. Gold fell back towards the $1400USD per ounce level after its recent epic ride while Bitcoin put on more gains as its trajectory goes SpaceX like! The Shanghai Composite

8

Goldman: Sell Australia!

Via Goldman today comes an ASX downgrade: “At this point, the relative risk/reward seems to favour fading this outperformance in favor of the north Asian markets.” “First, valuations have inflated to nearly 16 times forward earnings per share and 2.1 times trailing book, which are the most expensive in the region relative to the 10-year

2

Macro Morning

By Chris Becker  Risk sentiment was pushed lower overnight as the less dovish Fed and a slump in new home sales saw a selloff across Wall Street with tech stocks leading the way. Oil prices shot higher again on more Gulf tensions with the USD roaring back to life. Looking at yesterday’s action in Asia first, the

59

Macro Afternoon

Risk sentiment is falling quickly here in Asia with most share markets taking a dive. with bids in Kiwi and Yen as other safe havens like Treasuries get a bid, the 10 year falling below 2% again. It looks like another poor session on Wall Street tonight with no positive catalysts forthcoming as geopolitical tensions remain

2

Macro Morning

By Chris Becker  Risk sentiment in overnight markets remained cautious, with interest rates falling again, pulling the USD down while lifting gold to another new record high. With no new economic events to go on or news catalysts, it was a relatively dull session! Looking at yesterday’s action in Asia first, with Chinese share markets almost unchanged

48

Macro Afternoon

Asian share markets are literally treading water while currencies are the only movers as traders try to find their feet at the start of the trading week. There was a  fly in the ointment for Aussie short sellers – the RBA – as Governor Lowe’s speech put a little boost under the beleaguered currency. Chinese share

4

RBA recommends you buy shares

Via Damien Boey at Credit Suisse: The RBA has just released a paper about the history of the Australian equities. It contains some very useful and unique historical data on the Australian market. For context, earnings, dividends and total returns data for the Australian market has been quite sparse, and of questionable quality going back in

1

Macro Morning

By Chris Becker  Risk markets are on edge with tensions in the Gulf over Iran and trigger finger Trump, overshadowing the poor manufacturing PMI prints on both sides of the Atlantic. Wall Street had a lucklustre session as interest rates remained depressed, as 10 year Treasury yields remained just over the 2% level. The economic calendar starts

62

Macro Afternoon

Asian share markets are loving the possibility of the end of the US/China trade squabbles and the hope of more stimulus down a multitude of pipelines stretching from Europe, the US and China and back again. Chinese share markets have seen the biggest gains, with the Shanghai Composite up exactly 1.5% and breaking the 2900 point barrier, currently

0

Macro Morning

By Chris Becker  A big night on risk markets with stocks breaking out of their funk on Wall Street, helped along by the notion that Trump maybe visiting the Chinese Premier next week. This lifted commodities across the board and their proxies, including the beleagured Australian dollar, while dovish comments from Super Mario saw interest

63

Macro Afternoon

Asian share markets continue their mixed start to the trading week as risk markets continue to wait the latest from the tanker attacks in the Gulf and the upcoming FOMC Meeting on Wednesday. The PBOC is basically holding steady with its firm hold on the Yuan while the RBA released its latest minutes which sent

3

Macro Morning

By Chris Becker  Stocks pushed slightly higher on Wall Street overnight, following a mixed session in Europe where risk markets remain poised before tomorrow nights FOMC Meeting. Interestingly, the Fed Business Index fell sharply last night to a 2 year plus low, with consumer and household sentiment figures also dropped, putting more pressure on the

53

Macro Afternoon

Asian share markets have started the week on a mixed note, continuing the confused Friday session as risk markets await the latest from the tanker attacks in the Gulf and the upcoming FOMC Meeting on Wednesday. Chinese share markets rebounded following their poor showing on Friday with the Shanghai Composite lifting nearly 0.3%, almost back above

5

Macro Morning

By Chris Becker  Friday night on Wall Street was a mixed bag with strong retail figures pushing the USD and interest rates up, with revisions on previous months also lifted, giving watchers less hope that the Fed will pull down interest rates sooner if the US consumer is still strong. Oil prices blipped higher on

138

Macro Afternoon

Asian share markets have finished the week on a mixed note with Chinese bourses falling in the wake of weaker industrial production growth numbers while gold has spiked to a new monthly high despite a much stronger USD. Chinese share markets were the main casualties again today with the Shanghai Composite falling nearly 1% to get

0

Macro Morning

By Chris Becker  A relatively quiet night on markets with stocks and other risk assets rising slightly, while Treasury yields fell as the probability of the Federal Reserve cutting rates rose. In the UK, the first round of voting on the new Tory leader resulted in Boris Johnson in the front, which confirms more chaos

95

Macro Afternoon

Asian share markets responded in kind to the poor mood on Wall Street overnight with the focus on rising tensions in Hong Kong and global trade concerns to blame. Locally the unemployment rate ticked higher leading to a fall in the Australian dollar while the PBOC kept the Yuan largely unchanged. Chinese share markets diverged today

1

Macro Morning

By Chris Becker  A lot of ructions overnight, first being Trump putting his foot in his mouth again over German sanctions, sending Euro lower, while increased tensions over trade with China saw confidence evaporate on Wall Street. The USD is firmer across the board despite a weaker than expected CPI print overnight, while oil prices