Macro Afternoon

by Chris Becker

With the BOJ still confirming that it is pressing the helicopter money button, the Yen sold off to buoy Japanese markets as a bounce in iron ore helped lifted domestic stocks to end the week more positively.

In China, the Shanghai Composite is sliding down going into the close, off by 0.2% to 3165 points, still well below the key support level at 3200 and heading for the next level at 3100. The Hong Kong based Hang Seng is doing a little better, up 0.15% to build on yesterday’s gains, pipping just above 24000 points as it holds just above the trailing ATR support zone at 23700:

The Nikkei is having a solid day, up 1% or more to 18620 points as the Yen slides against USD. The USDJPY pair has broken above the 109 handle and rolling resistance to make a positive move higher, supported by momentum on the four hourly chart. My target is up at 110.7 at best:

S&P futures are building slowly as risk trade returns to more positive bent to end a mixed week:

The ASX200 is also building on its previous positive session, closing up 0.6% to 5854 points, with some big rises in iron ore stocks on the 5% bounce in China while financials are doing well too, up 1% in short covering.

The Aussie dollar is trying to claw back above the 75 handle proper against USD and is doing better than I expected here, up to 75.40 with firm support at 75.10 or so a potential uncle point to ride out a long over the weekend:

The data calendar tonight ends the week with a slew of preliminary services PMIs in Europe and the US plus another oil rig count.


    Multinational oil giant Chevron has lost its appeal against a multimillion-dollar tax bill issued by the Australian Taxation Office, setting the scene for the tax man to challenge other companies with dubious tax schemes.

    While Chevron’s appeal to the Full Federal Court is not the end of the matter – the company has told Fairfax Media it may appeal to the High Court – the case has emboldened Tax Commissioner Chris Jordan to go after other multinationals.

    Gee paybacks a bitch.

    • +LOTS

      Best post this year. Thanks! (They would have saved so much money in fines if they had just invested in Oz property by the way.)

      • True colours and that’s why I love you.

        So don’t be afraid to let them show, your true colours, true colours… shining through.

        Cheers Skippy. ; )

      • Suggestive rhetorical tautology is….. tautological gramps…

        PS Ms Lauper’s lyrical efforts deserve better reviews. And (granted) potentially better applications too.

      • Entrails are a bad axiom generator for tautological foundations… massive time and space problem w/ poor data sampling.

      • Government , via ATO,

        undermining / raiding / ‘stealing’ – very unfairly and unjustly –

        the fruits of private enterprise risk-taking.

        Unconscionable conduct. Shame on the ATO.

      • UptownFunk…

        Taxes are part of society, seems heaps of dramas have been the direct result of the philosophical anti tax wing nuts.

        disheveled…. sorta like the anti vaxers….

      • Skippy … hey, Mate I could be serious,

        The PRIVATE sector manages money BETTER than the Government. So, allow more of the spoils to to former, simple.

  2. Answer: None. What would possess anyone to kit out a 457 visa holder with a lightbulb anyway?

  3. Do Nothing doing what he does best: SFA.

    “Malcolm Turnbull dampens talk of affordable housing focus in budget”

    Prime Minister Malcolm Turnbull has cooled expectations of an affordable housing “centrepiece” in the budget, even as junior minister Michael Sukkar promised a policy to help first home buyers save a deposit without raiding superannuation.

    • He’s been doing plenty: providing left cover for Australia’s transition into a downright oligarchy.

      Don’t get angry, get even. They tore down the social contract and the working class (soon-to-be working-poor) no longer have recourse within the law. Retribution is all we have left.

    • The housing affordability debate becoming a little disheartening. Even Sky News has turned on first home buyers with a new slogan “we don’t have a crisis of affordability, we have a crisis of greed”, accusing first-home buyers of being the greedy ones for expecting to work and live in the same city as their friends and family.

      We have officially reached peak propaganda on this subject.

      • It’s not Sky’s fault FHBs are too temporarily embarrassed to purchase a dwelling! It’s their job to report the news, not make policy. Or influence government. Or to play one economic sector off against another.

        You just leave uncle Rupes alone you ungrateful consumer of non-proprietary media you. ; )