Big four back in favour for investors

Original article by Scott Murdoch
The Australian – Page: 17 & 20 : 11-Feb-19

Australia’s banking index gained six per cent in the week ended 8 February, with the rally being attributed to renewed interest in the sector among international equity investors. Rahoul Chowdry of law firm Minter Ellison notes that sovereign risk concerns regarding Australian banks have abated following the release of the financial services royal commission’s final report. Mike Evans from the Bank of America Merrill Lynch and Marianne Birch of Macquarie Capital agree that the final report has created greater certainty for investors.

CORPORATES
MINTER ELLISON, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CITIGROUP PTY LTD

Investors take cover from Kim’s missile over Japan

Original article by David Rogers
The Australian – Page: 17 & 24 : 30-Aug-17

Sharemarkets in the Asia-Pacific region retreated on 29 August, after North Korea fired a missile over Japan’s main islands. Futures pricing suggests that the S&P 500 will also fall as geopolitical tensions on the Korean peninsula increase. Meanwhile, the yield on 10-year US Treasuries reached a two-month low and the gold price peaked at a nine-month high of $US1,322.41 an ounce. Sue Trinh of RBC says financial markets’ initial response to the latest missile test was "relatively shallow" and short-lived.

CORPORATES
RBC CAPITAL MARKETS, STANDARD AND POOR’S 500 INDEX, STANDARD AND POOR’S ASX 200 INDEX, KOSPI INDEX, NIKKEI 225 INDEX, HANG SENG INDEX, SHANGHAI COMPOSITE INDEX, JAPAN. OFFICE OF THE PRIME MINISTER, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED NATIONS. SECURITY COUNCIL, UNITED STATES. DEPT OF STATE, NOMURA AUSTRALIA LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED, BLACKMORES LIMITED – ASX BKL, CALTEX AUSTRALIA LIMITED – ASX CTX, REGIS RESOURCES LIMITED – ASX RRL, RETAIL FOOD GROUP LIMITED – ASX RFG, MANTRA GROUP LIMITED – ASX MTR, DOWNER EDI LIMITED – ASX DOW, SPEEDCAST INTERNATIONAL LIMITED – ASX SDA, UBS HOLDINGS PTY LTD

Global investors moving ASX funds elsewhere

Original article by Myriam Robin
The Australian Financial Review – Page: 31 : 23-Jun-17

Some fund managers suggest that the Australian sharemarket’s 1.6 per cent downturn on 21 June was prompted by foreign investors shifting out of local equities. Meanwhile, Tony Brennan and Mark Tomlins of Citigroup say Asian sharemarkets may be more attractive to international investors at present, given their better prospects for earnings upgrades. Hasan Tevfik of Credit Suisse adds that passive fund managers are likely to reduce their exposure to Australian shares in coming years as the MSCI Asia-Pacific ex-Japan’s weighting toward Chinese and Hong Kong-listed shares increases.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, MSCI ASIA-PACIFIC EX-JAPAN INDEX, MSCI EMERGING MARKETS INDEX, MSCI INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, COMPUTERSHARE LIMITED – ASX CPU, MSCI AUSTRALIA INDEX

Numbers look good, so where’s the euphoria?

Original article by David Rogers
The Australian – Page: 28 : 31-May-17

Australian bank and resources stocks rallied on 30 May 2017, allowing the benchmark S&P/ASX 200 to finish in the black after reaching a three-month low early in the session. Meanwhile, Citigroup notes that investor sentiment is not sufficiently high that a market retreat is likely, despite key US indices being at or near record highs. However, the S&P/ASX 200 and the S&P 500 have tended to underperform in the month of June, shedding an average of 2.2 per cent and 1.5 per cent respectively over the last 10 years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, CITIGROUP GLOBAL MARKETS INCORPORATED, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Traders pour into gold as tensions rise

Original article by David Rogers
The Australian – Page: 32 : 13-Apr-17

The price of gold has rallied in recent weeks as growing geopolitical tensions prompt renewed investor support for "safe haven" assets. Meanwhile, the yield on 10-year US Treasuries recently reached a five-month low and it is again testing this level, while the VIX volatility index has risen to its highest level in five months. However, Joseph Capurso of the Commonwealth Bank says the continued strength of the US dollar suggests that recent financial market trends do not constitute a "global risk-off event".

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP CAPITAL INVESTORS LIMITED

For markets, the devil was in the lack of detail

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 13 & 29 : 13-Jan-17

Ewa Turek of Morgan Stanley notes that the first press conference of US president-elect Donald Trump offered few details of the policies he will prioritise after taking office. US markets posted modest gains in response to the press conference, while the Australian market dipped slightly. Garry Laurence of Perpetual adds that investors are waiting for more details of Trump’s policies, as well as guidance regarding the outlook for US interest rates.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, PERPETUAL LIMITED – ASX PPT, WINGATE ASSET MANAGEMENT PTY LTD, MORGAN STANLEY WEALTH MANAGEMENT AUSTRALIA PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

Clinton victory set to unleash a ‘wave of cash’ into global markets

Original article by David Rogers, Glenda Korporaal, Michael Bennet
The Australian – Page: 19 & 32 : 8-Nov-16

The Australian sharemarket rallied on 7 November 2016, after a new FBI probe cleared US presidential candidate Hillary Clinton over the use of a private email server. AMP Capital’s Nader Naeimi says investors are likely to reallocate cash holdings to higher-risk assets if Clinton wins the election. Meanwhile, Paul Donovan of UBS has warned that world trade and global capital flows could be disrupted if Donald Trump becomes president.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UBS AG, WESTPAC BANKING CORPORATION – ASX WBC, NIKKEI 225 INDEX, NZSX-50 INDEX, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, UNITED STATES. FEDERAL RESERVE BOARD

‘Something’s gotta give’: rising stocks, bonds and gold sound alert

Original article by Michael Roddan
The Australian – Page: 19 & 27 : 13-Jul-16

The Australian sharemarket has gained six per cent since reaching its recent low in the wake of Great Britain’s vote to leave the European Union. Meanwhile, the S&P 500 has risen by 16 per cent since February 2016, and it reached a record high in mid-July. Traditional safe haven investment classes are also in strong demand, with the yield on 10-year Australian government bonds remaining close to a record low and the gold price testing its highest level in more than two years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, BAKER STEEL CAPITAL MANAGERS LLP, UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, JAPAN. OFFICE OF THE PRIME MINISTER, NIKKEI 225 INDEX

Brexit II pushes Aussie bonds to record low

Original article by Vesna Poljak, James Chessell
The Australian Financial Review – Page: 1 & 29 : 7-Jul-16

The yield on Australia’s 10-year government bond fell to a record low of 1.84 per cent on 6 July 2016. Bearish sentiment toward equities also prompted the yield on US Treasuries to fall to 1.34 per cent. The global shift to "safe haven" assets also prompted a rally in the gold price, which reached its highest level in two years. Meanwhile, the fallout from the UK’s vote to leave the European Union is continuing, with several British property funds moving to freeze redemptions.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, BANK OF ENGLAND, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, AXA INVESTMENT MANAGERS PTY LTD, M&G INVESTMENT MANAGEMENT LIMITED, AVIVA PLC, STANDARD LIFE PLC, YOUGOV LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SPDR GOLD TRUST, COMMODITY EXCHANGE OF NEW YORK

It’s a big short-term buying opportunity

Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 24-Jun-16

Charles de Bolssezon of Societe Generale forecasts that the FTSE 100 will rally in coming months if the UK votes to remain in the European Union. However, the FTSE is tipped to shed about 15 per cent if Britons vote to leave the EU, while the S&P 500 will fall by 10 per cent. Richard Coppleson of Bell Potter says Australia’s benchmark S&P/ASX 200 would also fall sharply in the event of a "Brexit", but he adds that this would create buying opportunities for investors in the short-term.

CORPORATES
SOCIETE GENERALE SA, FTSE 100 INDEX, STANDARD AND POOR’S 500 INDEX, BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, EURO STOXX 50 INDEX, FTSE 250 INDEX, NIKKEI 225 INDEX, CITIGROUP INCORPORATED, BANK OF ENGLAND, UNITED STATES. FEDERAL RESERVE BOARD