Macro Afternoon

by Chris Becker

A poor start to the week in Asia as yet again, tensions rise on the Korean peninsula. The usual response is a run to safe havens with Yen bid up strongly alongside gold, with the former providing a huge headwind to domestic Japanese stocks. Only Chinese bourses have advanced as the tepid NFP print on Friday also puts caution to the buy button pushers.

In mainland China the Shanghai Composite is up a few points at 3372 slowly melting up to 3400 points after the big breakout last week.  The Hong Kong based Hang Seng Index is off nearly 1% to come back below 28000 points and setting up for a potential swing short position, although firm support is a ways off:

Japanese stocks were hardest hit, with the Nikkei falling almost 1% exactly to close at 19508 points, still below the very firm resistance at the 20,000 point level.  The USDJPY pair has dropped back well below the 110 handle and is currently setting up for further falls tonight as it slips to 109.50 and perhaps down to ATR support at the 109.30 or so:

S&P futures have gapped down suggesting a significant drop on the open later tonight for US stocks:

The ASX200 starts the week poorly as well, losing 22 points or about 0.4% to close just above the critical 5700 point level. This takes it back to the 200 day moving average once again, with broad losses in financials the major culprit here.

The Aussie dollar has fallen back somewhat but is not yet below the previous resistance now support zone in the short term at 79.50 against USD, but its close. There is potential for a fall through to the daily uptrend line at around 79.20 on any major risk-off event:

The data calendar starts the week very quietly following the NFP print as usual, with nothing of note slated tonight.


  1. Mining BoganMEMBER

    Meh, markets. The real movement today is off the pitch in Bangladesh.

    LBW Lyon! It wasnt that long ago there was talk of dropping GOAT. Now we need four of him.

    Bangladesh 5-117.

    • Classic ….. lose the toss on these sort of pitches, let the opposition get 200+ in first innings = struggle street
      6 / 253 at the moment so this is really struggle street. Had them more or less on the ropes then allowed their number 6 and 7 to knock up 60+ each and one of them is still going strong. Well done Bangladesh !

    • Love the bullshit carousel images at the bottom of the page showing mildly attractive families in new housing development areas… Just thinking to myself… people like that don’t live in places like those.

  2. “The Liberal National Party (‘LNP’) Welfare Card programme is really a LNP rort for the benefit of the Liberal and National Parties and their members, donors and supporters. Indue Pty Ltd, the corporation awarded the contract to manage the Welfare Card programme and to operate its underlying systems, is a corporation owned by Liberal and National Party members and that donates to various Liberal and National Party branches around Australia.

    The former chairman of Indue is none other than former LNP MP Larry Anthony who is the son of former Liberal Country Party Deputy Prime Minister Doug Anthony. Anthony now holds his shares in Indue in his corporate family trust managed by Illalangi Pty Ltd. Other companies now owned by Larry Anthony, or by the corporate trustee of his family trust, Illalangi Pty Ltd, work under ‘sub’ contracts for Indue itself and make their profits from dealings with Indue in the course of Indue performing its contracts with the LNP Government.

    These corporations are SAS Consulting Group Pty Ltd – a political lobbying group that counts Indue as a client – and Unidap Solutions Pty Ltd – a digital IT services corporation that provides Indue, as well as the current LNP Government directly, with various IT services. Larry Anthony is also current president of the National Party of Australia, that is, the ‘N’ in ‘LNP’.

    Setting up networks of corporations and trusts is standard practice for those wishing to conceal their involvement in an enterprise or operation and is often engaged to shield the identity of those involvement in that enterprise.”