currency war

Mathan Somasundaram

Aussie market started positive in line with US market before the reality of weaker commodities and slowing economy took it down to slight negative territory. As we have been saying for the past few weeks, all the macro, fundamental, technical and trend leading indicators were showing profit taking was coming... Show More

Mathan Somasundaram

Aussie market started positive on positive global sentiment before giving up half the gains as the day went on. The market realised that the ECB has thrown everything on the table and will be accommodative for few years of low growth. PBOC is on media frenzy mode to explain allowing... Show More

Mathan Somasundaram

Aussie market started positive and then ran out of puff by the close to finish mainly flat. Gold sector remains key with rising market risk as the Spot Gold in USD creates a positive technical signal and Spot Gold in AUD remains in historical high levels. Latest data out of... Show More

Mathan Somasundaram

Aussie market pulled back with usual Friday profit taking as investors were not willing to carry risk into the weekend. The bounce with Oil took a breather as Saudi Arabia confirmed they were talking about freezing and not cutting supply. Non OPEC and OPEC countries will have to come up... Show More

Mathan Somasundaram

Aussie market started positive and then went on a rampant short covering run to deliver a strong positive finish after a weaker than expected unemployment data . The bounce was mainly driven by Oil recovery. Non OPEC players showing signs of working towards a deal with OPEC to first freeze... Show More

Mathan Somasundaram

Aussie market started negative on market uncertainty before the shrinking bond yields pushed up the yield trade to deliver a solid positive day. Global markets went into last night with everyone wearing their “chicken little” suits screaming the “sky is falling”. The global markets were jumping on shadows. US Fed... Show More

Mathan Somasundaram

Aussie market started negative and went further negative as RBA opened the door for more rate cuts as the economy slows down. The global sentiment from the Japanese negative rates move on the currency war was abating while RBA delivered as expected. Despite the overnight strength in the currency, RBA... Show More

Mathan Somasundaram

Aussie market started positive and then ran out of puff before BOJ’s negative interest rates announcement pushed it into the positive territory. The Japanese markets moved from negative 0.5% to positive 3% and then fell back down to negative 1.5% before moving up positive 2%. If you bought and sold... Show More

Mathan Somasundaram

Aussie market started positive with global sentiment and continued up to finish very strong. Pretty much everything is going up…currency, commodities, European markets, US markets, Asian markets…even Shanghai Composite is up for now. Super Mario is talking tonight and that should give more clarity into ECB outlook while BOJ still... Show More

Mathan Somasundaram

Aussie market started flat and moved positive after China growth outlook was in the ball park while leaving option for potential stimulus. The currency once again pushed back above 69 cents while upcoming Chinese New Year unlikely to support stronger commodity prices in the next few weeks. The recent corrections... Show More

Mathan Somasundaram

We remain bullish long term while expected short term January profit taking remains after late December rally. US Fed raising rates strengthened USD and forced China to devaluate Yuan with slowing economy. The devaluation of the Yuan has started the rebalancing of manufacturing away from US, Germany and Japan and... Show More

Mathan Somasundaram

Aussie market opened on positive sentiment and then was further supported by the job vacancy data before the Chinese trade data set the rocket under the market. We saw a lot of short covering as the volatility index reached stretched levels and further boosted the market performance today. The positive... Show More

Mathan Somasundaram

Global market outlook: Declining global growth has driven major economies back to currency war for a bigger slice of the shrinking growth pie. US, Japan and Europe have gone down the path of currency devaluation to increase their share of manufacturing since the GFC. Appreciating USD has forced China to... Show More

Mathan Somasundaram

Aussie market opened negative and kept on falling with global investor selling before recovering some of the losses in the back end of the day. The move by China to allow Yuan to devaluate with the falling growth outlook is how the free market was expected to work. But in... Show More

Mathan Somasundaram

Aussie market started with a hammering and then recovered more than half the way back after global markets set a negative trend overnight. We see the global investor selling pressure holding the market to ransom till the currency drops to mid 60’s. The recent trend suggests we are going to... Show More

Mathan Somasundaram

Aussie market started flat and trended down before getting hit by domestic growth scare with current account deficit blowing out and global growth scare with China PMI falling again. China continues to support their equity market while putting restriction on speculation trading on Yuan. The market remains spooked with Chinese... Show More

Saxo Capital Markets Australia

The devaluation of the Yuan is setting in motion events that will directly affect the US economy. Saxo’s chief economist Steen Jakobsen says the consensus on the recycling of excess capital from Asia to the US bond market will change. There will also probably be “a significant reduction in China’s... Show More

Mathan Somasundaram

Aussie market got smashed as banks were unable to hold the market up with rising bond yield and appreciating currency. The global macro worries, currency wars and better than expected domestic data continues to put doubt on a May rate cut. We still struggle to see the index breaking above... Show More

Mathan Somasundaram

Aussie market finished positive on the back of commodity price recovery and M&A optimism. We saw Shell move on BG and FedEx move on TNT while mining & service stocks keep getting opportunistic bids (i.e. EHL turn today). Turnover was just below $4.8b. US markets finished flat overnight after starting... Show More