Macro Afternoon

by Chris Becker

A series of good news and possible intervention by Chinese authorities in the local stock market, coupled with some exhaustion has seen a generally positive day across Asia. Outside big falls in iron ore, commodity prices are generally stable as Australian bonds were sold off.

In China, the Shanghai Composite is steady going into the close, a late post-lunch dip mysteriously filled to make for a scratch session but still closing below key support at 3200 points.  The Hong Kong based Hang Seng is doing a little better, up 0.4% to take back yesterday’s losses but still just below 24000 points as it remains tentatively above the trailing ATR support zone at 23700:

Some good trade figures didn’t really help Japanese stocks that much even as Yen sold off against USD, with the Nikkei putting in yet another scratch session, closing at 18430 points – still below key support at 19,000. The USDJPY pair has tried to build on its gains from  yesterday, but refuses to head substantially above the 109 handle in what looks like more short term positioning before the London open as momentum remains negative on the four hourly chart:

S&P futures are dour moving into the transatlantic session, not happy to take no selloff in Asia as good news:

The ASX200 finally put in a positive session, closing up 0.3% to 5821 points, albeit with high volatility across the majors, particularly banks and miners with oil stocks mainly ending up in the red on the continued LNG debacle and a drop in overnight WTI contracts.

The Aussie dollar is trying to claw back above the 75 handle proper against USD but its looking extremely weak here going into the London open, unable to breach the low moving average on the four hourly chart:

The data calendar tonight includes a very closely watched speech by BOE Governor Carney in Washington followed by initial jobless claims.


  1. Dalian IO has made a roaring return for the afternoon banana-shift, back to 488.5, up 14.5.

    • The salesforce is strong with this one. But your training is not yet complete Gavin. If you go to Kangadillikanga to sell property for your sister, fail you will. Hold and buy more you must. It is your only hope.

  2. BEAR trap of last four weeks ending.

    Buy at current bargain/give-away prices :
    FMG ( Div yield of 6.1% = a gift ) aggressively



    Have a good night ….. despite yourselves.

      • Jelmech

        Because you didn’t get out of bed for that – according to YourWiseSelf – ‘shit 6.1% return’ on dividend yield for FMG ,


        you missed out on

        a 5.52% OVERNIGHT return in

        that FMG share price.

        Too bad for you, sorry. But I suppose you have by now to be used to that feeling of constantly ‘missing out’ on profitable trades.

    • Jake GittesMEMBER

      Anyone of the Albert Einstein, John von Neumann, or similarly gifted type who could give Bill Shorten’s position some semblance of intelligence.

      • Albert Einstein was only first to publish, it was a horse race at the end. Not to mention he died trying to finish his grand unified theory of everything, why, because he thought god would be elegant in his creation.

        Don’t like neoliberal economics – see John von Neumann, Nash, and McNamara.

  3. My wife received a call this morning from a client we work with who has PR and lived in Australia for the last 5 years. He was completing the application for his citizenship online and was frozen out with an error requiring him to call the department. As his english is not the best, my wife drove around to assist with the call. After 1.5 hours on hold and 339 calls ahead of her in the queue, she finally was able to speak to an immigration department representative who informed her that the citizenship changes Turnbull announced came into effect this morning. IELTS English scores across the board of 6 and above, 4 years in Australia on PR and less than 12 months away from Australia in this period, less than 90 days outside Australia in the last 12 months. There is also a hint of changes in the eligibility for benefits for PR recipients (ie they will no access to medicare) being discussed (found this from an immigration lawyer we know).

    • IELTS of 6 and above across the board?

      Jeez… most public servants I know wouldn’t pass at that threshold. Including the ones born outside of Australia.

      PS does fluent COBOL count as an alternative language qualification?

    • I would imagine no medicare access for non-citizens would be a budget winner. I doubt if the medicare levy contributions from PRs would exceed their medicare costs.

    • So he has PR. He’s lived here for 5 years. He’s applying to be a citizen. But his English isn’t so good?

      I can’t say I’m all that sympathetic to his plight.

      • Nor am I, just simply highlighting that this change was immediate in effect thus negating any attempt by migration agents to lodge paperwork ahead of the changes…..

      • Is it just me or has anyone else noticed that anyone who has the word “agent” in their job title is a dodgy fucker?

  4. arthritic kneeMEMBER

    Just had a Defense Housing Australia ad pop up where they actually merged a bank ATM with the front of a house……