Australian Shares

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Macro Morning

By Chris Becker A volatile start to the New Year on overseas markets with large gaps down on equities filled but not with confidence as bond markets and safe haven currencies remain the place to dump cash. Recapping Asia’s session yesterday first where the Hang Seng Index gapped 2% down on the open and has

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Macro Afternoon

Not a good start to the New Year here in Asia today, with stocks down across the region, and the Australian dollar falling as a proxy as an unexpected slate of data from China, coupled with unease over the US trade talks – let alone the stupid Trump (but I repeat myself) shutdown – adding

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Macro Afternoon

No surprise that Asian markets would react to the overnight selloff as the US shutdown, Mattis’ resignation and the usual end of year positioning add to the dour mood. The Shanghai Composite is down over 1% going into the close, currently at 2501 points as the selloff gains momentum.  The Hang Seng Index is treading water,

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When will the Fed blink?

Via Ambrose Evans-Pritchard: Monetary tightening by central banks is like trying to pull a brick across a rough surface with elastic: nothing happens; still nothing happens; then it leaps up and hits you in the face. The US Federal Reserve’s Jerome Powell may have a broken nose after asserting stubbornly this week that he would

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Macro Morning

By Chris Becker Trump’s continued mishandling of well, everything, including the latest shutdown attempt is sending markets into a spin going into Christmas, with US stocks falling nearly 2% overnight. This takes the current correction into possible bear market territory, a great gift for all those who bought up big during Trump’s promised tax cuts

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Macro Afternoon

With the steep falls on Wall Street overnight in reaction to a not-dovish-enough Fed, Asian markets have suffered a similar fate with Japanese stocks bearing the brunt of the carnage as the BOJ meeting also passes without any easing measures. The Shanghai Composite is probably the best performer, only down 0.4% or more to 2538 points

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Macro Morning

By Chris Becker It was all about the Fed last night and oh boy did markets react to that tiny rate rise, with US stocks falling off the proverbial confidence cliff as USD soared against everything including gold. Treasuries were near motionless however. The calendar is packed today with Australian unemployment and the BOJ interest

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Macro Afternoon

A sea of red across Asian bourses, but it’s a shallow sea with only minor losses outside China as traders await tonight’s FOMC meeting. Curreny markets were very quiet obviously, while gold crossed above $1250USD per ounce. The Shanghai Composite closed down 1% or more to 2549 points in a steep selloff as previous support level at

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Macro Morning

By Chris Becker A modest rebound overnight on Wall Street turned into a scratch session as oil prices stumbled, with the USD and Treasury yields still falling as markets grapple a near certain rate rise by the Federal Reserve tonight amid continued chaos in the White House. Recapping Asia’s session yesterday where the Shanghai Composite closing over

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Macro Afternoon

A very dour mood across in Asia in response to the overnight slump on Wall Street, although the mangnitude wasn’t the same, the intent of taking risk off the table before the FOMC meeting is paralleled here. The Aussie dollar finally found some life but it’s playing catchup as USD is sold off across the

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Macro Morning

By Chris Becker Caution has been downgraded to uncertainty with stock markets selling off sharply overnight after what looked like a good bounce here in Asia yesterday. US stocks fell over 2% with US 10 year Treasury yields now well below the 2.9% level, dragging the USD lower against all the majors except Aussie. Recapping Asia’s

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Macro Afternoon

A relatively upbeat start to the week here in Asia following what was a dour finish on Friday night on Wall Street. In China markets however are flat but elsewhere, weaker domestic currencies are supporting an eager start with the ASX200 the standout. The Shanghai Composite is barely up after the lunch break, hanging on 2595 points

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Macro Morning (Trading Week)

By Chris Becker  Looking at Chinese stocks first, where last week saw the Shanghai Composite again fail to stabilise above tentative support at the 2600 point level, as economic news disappointed. The continued trade war and lack of confidence in getting any traction with a near powerless Trump as not given any added spark to this depressed

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Macro Afternoon

Not a positive way to finish the week here in Asia with a broad selloff due to the slowdown in Chinese economic data, with the Aussie and Kiwi falling alongside all the Yen crosses. As markets position for next week’s FOMC meeting, where expectations are for another rate rise, it’s caution across the board due

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What to expect from asset markets in 2019

Via the excellent Bill Evans at Westpac today: What do our economic forecasts for 2019 mean for Investors? Our key economic themes are: Australian economy and markets • Growth in the Australian economy will slow in 2019 under the weight of political uncertainty; falling house prices; a contraction in residential construction; global volatility; and a

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UBS: Labor franking reform to boost buybacks

Via UBS: …Labor’s proposed franking ‘scale-back’ also makes the near-term return of excess franking credits more attractive. Figure4 ranks the franking balances of companies relative to market capitalisation in the ASX150. Among the large caps, BHP Group and Rio Tinto have already announced off-market buybacks. Our survey of UBS analysts highlights that Woolworths and Wesfarmers

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Macro Morning

By Chris Becker Caution reigned on risk markets overnight with the ECB meeting taking a dovish turn while currencies were largely unchanged alongside the other barometer, US Treasury yields although the 10 year remains under the previous “magical” 3% level. Commodity prices fell slightly, with the Aussie dollar also slipping alongside Kiwi. Recapping Asia’s session

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Macro Afternoon

An very positive day for risk assets here in Asia as the USD continued its retreat against the majors except Yen, helping domestic Japanese stocks while Chinese bourses finally played catchup and have lifted significantly, especially on the mainland. The potential news of the Chinese buying soybeans from the US has overshadowed the growing political