Asian stocks are broadly higher ahead of the Fed rate decision later today, whilst the NZ dollar is buoyed by higher business confidence.
Trump and Iranian President Hassan Rouhani came to a head at the UN General Assembly on Tuesday with the US President vowing more sanctions against Tehran, whilst President Rouhani suggested that Trump suffers from a "weakness of intellect." Trump is really trying to bring the price of oil into play before the midterms as high oil prices could hit the
The overarching narrative in global markets is transforming from one preoccupied with the trade war, to one focused on Thursday morning’s (AEST) meeting of the US Federal Reserve. As far as developments in the trade war go, in a week bereft other major stories, traders are demonstrating tentative signs of ease on the subject. Markets are strapping themselves in for the long haul, and a begrudging acceptance that this thing will take time to play out is the prevailing mentality. With that in mind
Asian equities diverge, as Chinese shares fall and Japanese shares climb.
The Euro jumped on Monday after Mario Draghi of the ECB signalled that policymakers are on track to reduce stimulus measures. He stated that the bank was confident it could maintain inflation targets over the next few years.
In the EM space, India's Nifty Fifty stock market is seeing a sell off after reports that a major lender is struggling to service $12.6bn of debt. The index is down 7% since highs seen in
Trade War: Markets were made to curb their enthusiasm overnight. Trade war realities bit again and the relief rally that had defined last week’s trade dissipated. It’s not a terrible cause for alarm yet, but it highlights how difficult to predict the impact on global trade disruption happens to be. It’s a debate that challenges orthodoxy, especially given that markets have done all they can to shrug off the potential consequences new-protectionism will have on global growth. Inefficiencies aboun
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 25 Sep 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral ad
Oil prices at 4-year high after OPEC declines to raise supply
Bank holiday in China and Japan
Trade Talks: Abe's trade discussion with Trump is "constructive" in second round, China will only hold trade talks once Trump stops threats
Trade wars cause the European markets to dip, Brexit is also affecting sentiment
Dollar remains steady, whilst Indian rupee drops
Asian overnight: A largely bearish affair overnight saw losses through the Hang Seng and ASX 200,
Geopolitics is already shaping-up as the major driver of financial markets this week. Data is rather light, with the US Federal Reserve’s meeting on Thursday morning (AEST) the centrepiece of an economic calendar otherwise filled with a handful of central-bank-head speeches and a meeting of the RBNZ. Hence, traders will find themselves sucked into a vacuum that can only be filled by noise surround the global economy’s biggest contemporary international-political hot-points. The break-down in tal
Trade Wars Update: It No Longer Matters?
Seemingly a routine occurrence for the global financial markets, we saw the state of global trade deteriorate yet again through the past week. As expected, the United States went forward with tariffs on an additional $200 billion in Chinese goods. The terms are for a 10 percent rate on a range of imports that will increase to 25 percent by the end of the year. The standard, immediate response from China was quickly implemented, but only on $60 billi
Global equity markets are shining with the Japanese Nikkei hitting an 8-month high, Chinese shares on course to make their biggest weekly gains in 2 years, and a strong earnings outlook expected to continue.
US stock market also looks to continue it's march to record highs are strong fund inflows support the market. Figures released on Thursday by EPFR Global quoted a $14.5bn inflow.
The Hong Kong dollar (pegged to that of the USD) strengthened early Friday ahead of the US Federal
Stocks pull back in the Asian overnight market after a tepid close of Wall Street last night.
Bellwether metals copper and zinc, along with other industrial metals, continue their rally as investors and traders focus on increasing demand rather than US-Sino relations.
Rio Tinto announced a $3.2bn share buyback scheme, and whilst the Anglo-Australian miner saw 3.2% gain the ASX didn’t follow suit and ended down slightly. Potential swings on the UK Rio listing on the open.
In
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
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
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
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 17 Sep 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral a
Treasury Secretary Steven Mnuchin has invited Chinese delegates to a new round of trade talks. The news breaks just days after Trump threatened additional tariffs on Chinese goods.
Asian equities edged higher on Thursday in response to news braking of potential US-China trade negotiations, and have partially recovered previous losses.
While the UK and Europe prepare for the final rounds of Brexit negotiations, the government steps up its contingency planning. The prime minister i
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 bus
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
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
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 10 Sep 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral ad
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