Market pulled back slightly as global sentiment remains weak after running ahead of the fundamentals. US Fed has set the path to end cheap debt while every other central bank is on hold indefinitely. The stronger the yields, the strong the USD, the more pressure on Emerging Markets to raise... Show More
Market resumed belting position and investors were not holding back ahead of the US election. Just about every sector was in the firing line and RBA flip flopping was never going to help sentiment. Our market has delivered negative returns for the 9 out of the last 11 days as... Show More
Back in January, China sent world markets into a correction as they devalued the Yuan; between 31 December and 11 February, the broad MSCI All Countries World Index fell by 12%. Now, while everyone’s attention has been turned towards Britain, they’ve been quietly devaluing again. The Telegraph’s Ambrose Evans-Pritchard reported... Show More
“China’s had one of the biggest credit booms in modern history. Historically, credit booms of that size, which happen that quickly, they all result in financial crises,” says Harry Colvin, Senior Market Strategist at Longview Economics. So can China’s economy finally fulfil the age-old mantra of ‘this time is different’?... Show More
Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes one side effect of negative rates is that investors are being forced to invest in real assets. “Hansen says the most obvious example is in gold, however, he also says the trend is evident in oil, copper and even iron... Show More
Aussie market started negative on commodity weakness and then ran into Yuan devaluation, weak wages growth and housing bubble worries that knocked the air out of it. PBOC again moved the peg down for Yuan and sent the market into worry mode on how far the devaluation will go. Iran... Show More
Aussie market started positive before pulling back to finish negative on China Yuan devaluation and Oil price falling in Asia. PBOC moved the peg down for Yuan the most in six weeks while Oil started to pull back on Iran adding to oversupply worries. OPEC is still holding fire on... Show More
Aussie market started very negative before recovering over 1% from the lows with better commodities and China property data. The currency also saw some strength to push back above 69 cents while overall commodity cycle remains negative leading into the Chinese New Year. The recent corrections in global markets are... Show More
Aussie market opened negative with US markets before the Chiquities debacle made the global investors take down the Aussie market as the whipping boy for China. The day started with US markets falling over on weaker than expected growth outlook as the positiveness from lower cost of borrowings and oil... Show More
Aussie market broke the four day positive trend to deliver a negative day to finish the worst month since GFC. There are media articles saying that Chinese government has put together 100b Yuan to buy back shares on the market while arresting Citic employees on rumourtrage. This moves once again... Show More
Aussie market delivered fourth straight positive day on the back of global optimism that China is taking the right steps forwards. We turned cautiously positive when the market opened up with a big sell on Tuesday and the market fell to long term fair value. This valuation support level has... Show More
Aussie market delivered third straight positive day as DOWJONES popped over 600 points (i.e. 3rd best day ever!!!). We turned cautiously positive when the market opened up with a big sell on Tuesday and the market fell to long term fair value. This valuation support level has held for the... Show More
Aussie market delivered another positive day despite futures pointing to a negative day at the open. As we wrote on the “Morning Strip”, we expected the negative day to turn positive as market started to look past the short term worries and paid more attention to long term dynamics in... Show More
Aussie market surprised everyone with a short covering recovery to finish on a strong positive despite the early morning selloff. The global unknown is the growth rate of the Chinese economy. Global sentiment improved today as PBOC tried to calm markets down confirming their growth outlook views while leaving the... Show More
Aussie market ran into global selloff sentiment on China worries. The big negative global sentiment was further fuelled by the lack of any PBOC action to stimulate the economy or support the equities markets. Chiquities or Shangbang was down 8% and looks well on the way to seeing substantially more... Show More
The 4% depreciation thus far is probably insufficient. If depreciation pressure persists, how long the currency can stay expensive depends on the size of China’s foreign reserve war chest. Foreign reserves stand at around US$3.6 trillion. From 3Q 2014 onwards, it has been draining at a rate of around $25... Show More
"The world may have qualified reasons to welcome yuan devaluation if Chinese policymakers’ assertions are taken at face value – that shifting the yuan’s price setting towards market forces is the sole motivation. Show More
Aussie market got another day of working over by global investors getting out for currency worries. Aussie market is caught between global investor selling on currency worry and local investors buying for better yield. China growth worries will drive Yuan further down and that will hit Asian/Commodity countries. We are... Show More
Aussie market got smacked in line with global sentiment in an old fashion broad based bashing due to currency worries. It is becoming very clear that the Aussie market is caught between global investor selling on currency worry and local investors buying for better yield. The selling pressure is not... Show More
Aussie market started with a pop and maintained it through the day despite Shanghai Composite trading down 5% before recovering to be up 1.6% at our market close. Shanghai Composite was down over 11% in less than 24 hours before recovering. If you are an outperforming Chinese fund manager, you... Show More