ASX yesterday: SPI futures are indicating a 5-point jump at the open for the ASX200, as traders continue to ride the wave of relief washing-over global markets. The boost in global commodity prices has underpinned the bounce in the ASX, with the materials and energy sectors leading the charge higher. Commodities markets maintained their run overnight, collectively climbing 0.76 per cent according to the Bloomberg Commodity Index, while the price of oil also threatened to challenge new highs, hol
The rebound in Chinese stock markets has extended and US bond yields are steady after the market digested the trade tariff news. MSCI Asia-Pacific index up 0.95%, whilst the Japanese Nikkei rises 1.3%
A reclassification of the S&P 500 will see tech behemoth such as Facebook and Alphabet move from 'information tech' stocks into 'communication services' along with about a fifth of the index.
Oil prices are seen to consolidate after rally.
Cryptocurrency markets are holding
It was a choppy day in markets as sentiment vacillated in response to the latest escalation in the US-China trade war. US President Trump made traders wait a little longer than was flagged for his administration's trade announcement, leaving it until well after Wall Street's close to drop the news. Upon the eventual release, initial reactions were unfavourable: though the $US200bn worth of tariffs would go ahead on September 24th at the rate of 10 per cent, this will be upped to 25% come the sta
Trump to impose an additional 10% tariff duty on China rising to 25% next year if no deal is reached.
China's yuan down on the back of trade war talks, whilst a stimulus package helps support the equity market.
Gold's typical 'safe haven' status isn't re enforced this time around, with flow seen into the USD over the precious metal.
Nickel, aluminium and bellwether metal copper hit on the LME by the $200bn tariff. Oil drops on the same news.
Mining shares also hit as
US President Trump’s administration has announced the next round of tariffs on $US200bn worth of Chinese imports. The tariffs will be at a rate of 10 per cent, increasing to 25 per cent by the end of the year. The tariffs will be implemented on the 24th of September. The Chinese have stated that they will not come to the negotiating table if this second round of tariffs were implemented. We will be awaiting their response in the coming days.
The price action quoted below is evolving,
Whilst the Tokyo markets are on holiday, most other Asian equity markets slip on reports that Washington are continuing their tariff roll outs with a focus once more on Chinese imports. Thin liquidity due to the closed Japanese market didn't help, however moves in currencies seem minor.
Dollar steady against a basket of major currencies, whilst gold nudges up.
Oil prices have generally eased as the trade war row potentially distorts the demand outlook.
The cryptocurrency mar
Is There an Effort to Keep Markets Uneasy in Trade Wars?
How many times does something unusual have to occur before it is considered a planned? I have noted a number of times over the past month that some unexpected policy development was announced hours before the markets closed for the weekend. There is an unspoken commitment by central bankers and global leaders to prevent volatility in their respective financial markets. Volatility is the general definition of risk, and there is a clear
The economic calendar is relatively light, and markets await guidance from US President Trump about his intentions regarding the next round of tariffs on China. This will likely be the headline theme this week with sentiment probably swinging on how this narrative unfolds. There isn’t a terrific lead being handed to us from Wall Street, which demonstrated its fundamental resilience at the end of last week’s trading but didn’t truly threaten new all-time highs. An easing of fears around emerging
Important European Central Bank Rate Decisions
As we find distraction in trade wars and political risk, it is important to remember that we are still dealing with more traditional fundamental issues in the background. One of the most systemically important and extremely underpriced risks is the global market’s long-standing dependency on massive stimulus from the world’s largest central banks. That wave of easy money through massive rate cuts and largest stimulus programs has noticeably rec
Mark Carney will stay on as the BoE (Bank of England) governor until the end of January 2020 to help the UK through any Brexit turbulence.
Unilever laid out plans for it's December listing as a new Dutch entity, initiated originally due to Brexit risks.
China is set to request the World Trade Organization (WTO) to hit the US with good duties. Dollar slips.
Oil prices have risen following a report that the US crude inventories are set to decline.
Whilst top oil produce
GBP rallies on Brexit talks and a hope for a deal before the year is out.
Whilst there seems to be a break in tariff hostilities, it seen by most as only temporary.
A softer yen helped support Japan's Nikkei.
Asian overnight: Chinese and Hong Kong stocks were the two weak spots in a mixed overnight session, with strong gains for Japanese and Australian markets. The expected imposition of a whole raft of new US tariffs on Chinese goods has brought about further pressure on busi
Expected index adjustments
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Asian stocks have slumped to a 14 month low on the back of China worries.
USD edges higher as trade tensions keep markets on edge, whilst oil rises as new production in US drilling stalls.
Slightly higher dollar causes gold to fall, along with rate hike views and trade war worries.
Asian overnight: Fresh tariff concerns hit Asian markets overnight, with Apple suppliers particularly hard hit thanks to the US president’s tweets regarding the tech giant moving production to the U
For whatever good news that could come out this week in global markets, it would take something of extreme magnitude to distract traders from the unfolding emerging market crisis and escalating US-China trade war. The debilitating aspect of both stories is the sense of randomness and chaos surrounding each. Regarding emerging markets, the concern is how challenging it is to judge what exposure developed markets have to the various issues plaguing them; regarding the US-China trade war, the perce
The Asia equity market ex-Japan are looking at their lowest levels since July last year.
Tech sector as a whole was hit by a drop in chip stocks yesterday as well as a knock to social media.
Investors are cautious that new U.S. tariffs on China could come into play at any time.
Yen and Swiss franc are looking to be bid up for those looking at safe harbours.
Non-farm payrolls are out later today.
Asian overnight: Yet again trade concerns weighed on Asian markets,
The Asian market index futures boards are seeing a sea of red on the back of continued EM anxieties.
Dollar seeing pressure as European peers are bid up.
Tesla stock slips as investor worries deepen, whilst the Tesla bond hits a record low.
Uber on track for an IPO in 2019, however there are no plans to sell it's tech unit according to CEO.
Goldman have dropped bitcoin trading plans for now according to reports. Crypto space crashes.
Gold seeing an increase in
The pain in emerging markets continues to be too difficult to ignore, although it must be said that the effects of the crisis were relatively contained in overnight trade. There is this sneaking suspicion in markets presently, that whatever the worst outcome is for emerging markets, some of that must inevitably spill into the developed world. The issue is however, it remains to be seen how and where these signs of contagion may first show-up. Now of course it may not do so at all, but as the sco
Stocks have fallen whilst the dollar remains effected on trade tensions and tariff wars. The AUD has given up gains on GDP data.
Despite being the most shorted stock on Wall Street (even ahead of Tesla), Amazon pipped the $1 trillion valuation briefly yesterday as it surpassed the $2,050.27 a share requirement.
Its expected that there will be no change in the FTSE 100 for the first time in 12 years today with no individual constituents being upgraded or downgraded.
Market stress: The world economy and financial markets are displaying further signs of duress as traders enter the mid-part of the week. Trade War fears hang over markets like a darkening cloud, and emerging markets are wobbling and appear on the verge of a greater crisis. Of the two prevailing concerns, the problems within emerging market economies is slowly taking greatest attention. The South African economy looks to be slipping into recession and Argentinian policy makers are scrambling rega
Asian stocks were mixed yesterday with no lead from US session and continued concerns over trade tensions.
Argentina announces new fiscal policy, while Turkey's central bank hints towards a rate hike.
WTI trades higher as two rigs off the Gulf of Mexico are evacuated ahead of hurricane.
Brent loses ground as India allows state refiners to import Iranian oil.
RBA holds rates steady at 1.5%.
Asian overnight: A mixed session overnight has seen substantial gains in C
Soft start to the week: The weak lead from Wall Street combined with US Labor Day holiday kept trading within financial markets soft and subdued overnight. The return of trade war concerns following the disintegration of talks between the US and Canada weighed heavily on markets in the Asian region, with the Nikkei, Hang Seng and the major Chinese indices sustaining considerable losses. It places traders in a starkly different position compared to last week when it was hope that perhaps US Presi
Trump back introduction of tariffs on $200 billion worth of Chinese goods in ongoing trade dispute with China
US president also threatens to withdraw the United States from the World Trade Organisation "if they don't shape up", claiming unfair treatment
US & Canadian leaders optimistic in reaching revised NAFTA agreement by today's deadline
Panasonic are set to move their European base outside of London to mitigate risk going into Brexit
Argentinian government rai
A Habit of Cutting Down Progress Towards Ending Trade Wars
This past week, optimism was dangled in front of the markets and violently snatched away before it became too established. We have been dealing with the escalation of explicit competition in trade policies for the since March, and each hint of progress in turning the major players back from economic stalemate has been consummately dashed. This past week, there were two fronts on which it seemed we were heading for an important brea
Trade negotiations: Global markets ended last week on the back foot, after trade talks between the US and Canada stripped traders of some hope that the global trade-war may be de-escalating. It was figured that following the relatively positive developments in US-Mexico trade negotiations early last week that perhaps a change of tact was emerging from US President Trump’s administration regarding global trade. Hopes were quashed upon news that negotiations between the US and Canada had broken do
Asian markets were largely negative, dropping for a 3rd consecutive session on further trade escalation
US - Canada trade talks knocked as Trump threatens to quit NAFTA altogether
US markets closed for Labor Day
Oil prices dipped lower on Monday on the back of rising supply from OPEC and the U.S
Asian overnight: The two main rounds of negotiation on Friday have come back to bite markets at the start of this week, with the breakdown in US-Canada trade talks and UK-EU Bre
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