Dalian is struggling again. Pointedly so when one considers the risk of coking coal disruptions:
Big Iron is hanging on:
Big Gas is up with oil, stupidly:
Big Gold is down with gold sensibly:
Big Debt is flying:
The rate hikes appear to have triggered a dash for trash, from Brain Wilson at CLSA:
While at face value the repricing of bank backbook home loan rates creates a NIM tailwind and uplift [CLSA] suggests that the move to reprice loans is evidence of even greater NIM headwinds in the half year to 2017.
The uplift in home loans does imply a positive delta in 2H’17 but [CLSA] senses the contraction in the 1H’17 is likely greater than the market expects.
Macroprudential will need to be tight enough to materially slow the property markets of Sydney and Melbourne. Bad loan risk is rising.
