Australian Shares

Asian share markets pivoted around inflation prints and other macro news as the chaos from Davos dies down although the TACO trade remains in play.

Wall Street continued the TACO trade overnight led by tech stocks while a series of high inflation data in the US failed to get the USD moving higher with all undollars continuing the structural “off-America” risk trade with the Australian dollar making another new high.

Asian share markets are generally higher across the region with only Chinese shares taking a breather as markets react to YATT (Yet Another Taco Trade) from Trump as all is forgiven over Greenland at Davos.

In a demented, incoherent hour long speech at Davos, Trump finally revealed his master plan by chickening out yet again on his threats to tariff Europe takeover Greenland.

Asian share markets have fallen across the region although Chinese shares remain resilient in the wake of the selloff on Wall Street overnight on a broader “America-off” strategy by all risk markets.

Charts from TME.

Wall Street came back from its long weekend holiday and sold off immediately in response to the EU revokation of the previous Trump-induced 2025 trade deal as the fallout from the shambles over Greenland hit all risk markets.

Wall Street futures fell sharply alongside the USD (and Bitcoin) while gold and undollars rose on the weekend tariff orders from the Trump regime, with the Europeans playing hardball.

Stocks are at their ATH but are crumbling.

With Wall Street closed for a long weekend holiday most risk markets sold off overnight as the blackmail threats on Europe from the Trump regime with counter threats of tearing up the Trump-induced 2025 trade deal heightened concerns of a wider transatlantic trade war.

Wall Street futures fell sharply alongside the USD (and Bitcoin) while gold and undollars rose on the weekend tariff orders from the Trump regime, with the Europeans playing hardball.

Well its going to be another interesting trading week to say the least with a flat session on Wall Street ahead of their long weekend holiday, while the rest of the world has to again adjust to a new world order where Europe and the US could be going to war.

Silver took a nose dive as the Trump regime enacted a critical minerals directive plus tariffs on semiconductors amid more national security beat-ups while still promising an attack on Iran keeping other risk markets in check.

Its all about Iran across risk markets as “peace” President Trump looks set to attack another country (how many is that this year so far) with oil prices still in the balance despite a big lift in US inventories overnight.

Asian share markets are still lifting across the board, performing better than transatlantic shares at least despite some mixed economic news from Japan and China.

I’m not saying it’s over, but we now see how it could be.

Overnight saw the release of the “official” US CPI print for December, and while the outcome was softer than expected risk markets were more wary of the continued political pressure on the Fed from the Trump regime and the burgeoning US government debt levels.

Asian share markets are booming in today’s session led by Japanese shares as BOJ and government officials try to talk down the volatility around Yen as it weakens steeply against USD.

Last night most risk markets shrugged off the attack on the US Federal Reserve’s independence by the Trump regime with a small blip against USD while Wall Street eked out a small return as European stocks outperformed again.

Asian share markets are generally higher in the first session of the trading week however volatility continues to rise in currency markets as the Trump regime tries to take away the Federal Reserve’s independence via open legal threats against Chairman Powell.

Friday night was a tale of two jobs reports – Canadian and American – with the latter NFP print coming in weak again although the headline unemployment number fell, giving USD a boost eventually after a volatile session.

Asian share markets are generally higher in the final session of the week however are hedging what will come later tonight with the expected US Supreme Court ruling on the Trump regime’s tariffs and the post-government shutdown employment print – aka the NFP.

Charts from TME.