Reading between the lines of data, bonds, and stock prints
Microsoft and Google report disappointing quarterly earnings after closing Tuesday. Australian inflation comes in hotter than the estimates suggested. With Chinese stocks struggling, inflation on a tear, and the Aussie dollar in the doldrums, will US company earnings provide a life raft to the markets? The week in data After delaying publishing to make room…
Finding a footing on uncertain ground
Present gyrations in stock valuations are at the higher end of what we might expect on average. The S&P/ASX 200 is currently at the same level it was at this time last month. Volatility is rising, yet the market hasn’t declared a course up or down; what are the implications? Highly volatile, no bang One…
International stock market dislocation
Hong Kong’s Hang Seng Index sheds 5% in Monday morning trade The S&P/ASX 200 is up 1.5%, tracking the US gains from last week Will Australian stocks continue to trail a US resurgence or be weighed down by the negative sentiment in Asia? Hong Kong Hong Kong’s flagship stock market reference, the Hang Seng Index,…
Earnings season
Big banks and tech have started the quarterly earnings season. JP Morgan, Netflix, and Goldman Sachs are amongst the big names reporting. What are some of the takeaways from US stock earnings for Australian companies? Earnings season The recent volatility in the debt markets has provided a boost to the large investment banks’ earnings. Both…
Bad news = good news. No news = bad news
China has delayed retail sales and macro productivity data release. The markets got off to a good start in a busy week for US bank earnings. A reversal in the UK tax policy has calmed the UK government debt markets. China With the twice-a-decade national congress currently underway in Beijing, the Chinese government has indefinitely…
Searching for the inflation inflection point
The S&P/ASX 200 is down 1.4% on Monday morning, trailing the US losses on Friday. Markets remain sensitive to inflation and interest rate policy. The international housing rental market remains stubbornly high and is the last piece of the inflation puzzle to overcome before interest rate policy can be eased. Hangover Friday’s US sell-off is…
Investors hold their nerve before a potential maelstrom
The S&P 500 is down a modest 1.4% this week after shedding 4% from Thursday last week. The markets are presently hyper-focused on inflation and reactive policy. What to expect from the balance of the week with a slew of sensitive international economic data being published. Investors hold their nerve before a potential maelstrom The…
European and American bankers raise the alarm for the likelihood of a recession
JP Morgan chief Jamie Dimon sounds the alarm on the global economic outlook. UK lender Santander has echoed Mr Dimon’s concerns. Why are leading bankers concerned about the economy, and should we be too? European and American bankers raise the alarm for increased recession likelihood Jamie Dimon is in the press this morning, sounding the…
Positive economic news troubles the stock market
The Asian market broadly sold off Monday morning. Markets have reacted poorly to positive economic data out of the US. Positive economic news troubled the stock market Friday as investors anticipate further rate tightening to stifle inflation. Positive economic news troubles the stock market In a twist to the normal proceedings, positive economic news is…
Turning tide or breaking wave?
The developed world ex-US NASDAQ:VXUS ETF is up 5.7% this week. The US S&P 500 is up 5.8% this week Are big international rallies reflective of an improving economic outlook or a brief respite from the pain yet to come? Recent price action In unison, international stock markets have rallied on very little positive news….
