What's happening in markets this morning?

Patrick Poke

Livewire Markets

Seth Klarman's annual letter to Baupost investors does the rounds at Davos (and I've got a copy to share with you); Capital Economics forecasts the AUD to fall to 60c; and NAB data suggests Christmas spending will disappoint. Here's what's happening in markets today. 

What I'm reading

Seth Klarman's annual letter

Founder of the US $30B+ Baupost Group, Seth Klarman, has been touted as the next Warren Buffett. His annual letters to investors are usually much more difficult to get your hands on though, as Baupost is structured as a private partnership. Get access to the full letter below, or keep an eye out for my summary a bit later today. 

Read letter

Aussie Dollar could fall 15% 

The Aussie was previously being supported by expectations of higher rates in Australia, but with these expectations now beginning to reverse, it's all downhill for the AUD, according to Capital Economics.

Read article (AFR sub required)

NAB's data suggests weak Christmas spending

NAB's electronic transactions data is signalling a weak Christmas trading period for retailers, as many commentators had feared. 

Read article

Stocks to watch

  • Coles (COL) have appointed WITRON Logistik to manage their supply chain modernisation project, which will cost $950 million over six years. 
  • Santos (STO), Evolution (EVN), OzMinerals (OZL), and Galaxy (GXY) released their quarterly activities reports. 

Key market data

  • ASX Futures: 5790 (+0.19%)
  • AUD/USD: 0.7142 (+0.01%)
  • ASX200: 5843.7 (-0.26%)
  • S&P 500: 2638.7 (+0.22%)
  • China A50: 10938.54 (-0.09%)
  • Australia 2-yr bond: 1.883 (-0.26%)
  • Australia 10-yr bond: 2.290 (+0.22%)
  • US 2-yr bond: 2.589 (+0.47%)
  • US 10-yr bond: 2.750 (+0.65%)
  • Gold (USD/oz): 1281.85 (-0.12%)
  • Copper (USD/lb): 2.655 (-0.17%) 
  • Brent Oil (USD/bbl): 60.99 (+0.08%)
  • 62% Iron Ore (USD/t): 74.75 (unchanged)

Upcoming releases and events

  • ABS labour force data is released this morning at 11:30am
  • The US Senate will vote on the government shutdown on Friday
  • Markets closed in Sydney on Monday due to Australia Day public holiday. 

More morning notes?

If you're interested in being the first to see my summary of the Baupost letter later today, or my notes each morning, please hit the follow button below. Alternatively, please like, comment or share this with your investing friends. 

5 stocks mentioned

Patrick Poke
Patrick Poke
Managing Editor
Livewire Markets

Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.


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