8@eight: ASX set for positive open

By John Kicklighter
Updated January 19 2018 - 8:13am, first published 8:01am
The information of stocks that lost in prices are displayed on an electronic board inside the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia, on Friday, July 24, 2015. The Australian dollar slumped last week as a gauge of Chinese manufacturing unexpectedly contracted, aggravating the impact of declines in copper and iron ore prices. Photographer: Brendon Thorne/Bloomberg
The information of stocks that lost in prices are displayed on an electronic board inside the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia, on Friday, July 24, 2015. The Australian dollar slumped last week as a gauge of Chinese manufacturing unexpectedly contracted, aggravating the impact of declines in copper and iron ore prices. Photographer: Brendon Thorne/Bloomberg
MARKETS. 7 JUNE 2011. AFR PIC BY PETER BRAIG. STOCK EXCHANGE, SYDNEY, STOCKS. GENERIC PIC. ASX. STOCKMARKET. MARKET.
MARKETS. 7 JUNE 2011. AFR PIC BY PETER BRAIG. STOCK EXCHANGE, SYDNEY, STOCKS. GENERIC PIC. ASX. STOCKMARKET. MARKET.
Stock information is displayed on an electronic board inside the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia, on Friday, July 24, 2015. The Australian dollar slumped last week as a gauge of Chinese manufacturing unexpectedly contracted, aggravating the impact of declines in copper and iron ore prices. Photographer: Brendon Thorne/Bloomberg
Stock information is displayed on an electronic board inside the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia, on Friday, July 24, 2015. The Australian dollar slumped last week as a gauge of Chinese manufacturing unexpectedly contracted, aggravating the impact of declines in copper and iron ore prices. Photographer: Brendon Thorne/Bloomberg

The robust start to 2018 has taken a noticeable pause this week. That restraint is not only measured through more measured gains for the likes of US equity indices, but it has also shown in a divergence in performance for the range of global equities and asset classes. While the Dow 30 may be up, the FTSE 100 and ASX 200 are down for the week. Emerging markets and Yen crosses have advanced but high yield fixed income (aka 'junk bonds') have spun their wheels. A shares trader would call this a 'stock picker's market'; but on a global scale, this is evidence of a tempered conviction in risk appetite - the foundation of all markets. Was the climb that ushered in the first two weeks of the New Year the extent of the post-holiday reinvestment and/or carry-over speculative enthusiasm? If we lose momentum, it will be a lot more difficult to further bolster conviction with assets already this rich.