Macro Afternoon

Not a pretty end to the week here in Asia with all stock markets selling off in response to the overnight risk-off mood on Wall Street. Its all about trade with Trump continuing to upset the apple cart – and hence the global financial system.

The Shanghai Composite has had the rug pulled out, probably due to the Chiense trade data, slumping 1.4% to close at 3065, completely taking out intermediate support at 3100 points and putting it back  more than a week ago. The Hang Seng Index followed suit, down over 1.6% to close at 31007, barely clinging on to 31000. I’ve been mentioning how this melt up was looking unsustainable as it raced too fast to the former high at 31700, and here it is – watch the low moving average to hold:

S&P futures are off, as are Eurostoxx, down around 0.6 to 0.8% as the former dices with the uptrend line on the four hourly chart – very interesting session coming up:

Japanese stocks retraced as expected as Yen was bid strongly throughout the session, the inverse correlation holding. The Nikkei 225 closed 0.6% lower at 22695 as a result. The USDJPY pair has slipped back below the 110 handle as it completes a bearish rounding top pattern here on the four hourly chart:

The ASX200 was spared a big selloff, slipping only some 0.2% to still finish well the week above 6000 at 6045 points.  The Aussie dollar is dicing with the 76 handle and looks set to push below that level tonight as the USD bulls circle the gate:

The data calendar ends the week with the BOE inflation targets and Canadian unemployment prints.

Comments

      • Cyclone Ranger

        I hope that’s what you meant and not another ResearchTime related incident? We aren’t going to have to go through which fishy is eating which fishy again are we? I don’t think I could cope with that twice.

  1. Bloody Gramus has me worried with his / her anecdotes of a new flood of Chinese money coming at our property market. https://www.macrobusiness.com.au/2018/06/deep-dive-sydneys-melbournes-housing-correction/#comments

    I don’t know if there is any evidence – G was wrong about the Chinese student flood this year (if anything it throttled back a bit from memory). But still. If there is one thing that could stop our property market from falling, it’s Chinese $$$. I find this much more realistic than Peachy’s theories of bank collusion or coast to coast immigrant flophouses (not impossible mind you – just far more unlikely than a wall of Chinese money).

    Views anyone!?

  2. An ode to feeble corporate apology.
    https://www.rollingstone.com/politics/features/wells-fargo-apology-ad-w521172

    “Hi, America. We were awesome for a long time. Here are some culturally representative shots of people like you smiling and enjoying our services. After repeated denials, we recently had to admit to violating your trust, but the unelucidated bad thing doesn’t have to come between us. We promise: we fixed that shit. You will now wake up feeling refreshed in 3,2,1…”

    • TailorTrashMEMBER

      Those damned Japanese just won’t admit that Japan needs diversirty ………….I mean …Who needs a Japan ……..in this blended one world ?

      • No problem Skip,

        Read up the history of the Japanese islands including Okinawa and Hokkaido and you will find plenty of examples of ‘Japanese’ invading, dominating and ruling ‘Japanese’.

    • Yeah… what about people who actually want to wash their hands before they eat? (Incidentally this is my planned response any time I am challenged by a staff member when I go into maccas and heading straight for the bathroom – which I do a lot – but so far the challenge has never happened!)

      • Cyclone Ranger

        I know what else you do at Maccers too… when you go in and look at the menu board suspended from the ceiling behind the counter, see the huge family meal box panel, and think to yourself: this time I’m going to do it, this time I’m going to ask for the store number and dob the cnuts into Fair Trading.

        And then I’m going to go round every other store in walking distance that advertises product they refuse to sell and get those store numbers and dob those cnuts in too.

        If anyone is interested there ARE FOUR in the Brisbane CBD alone.

    • Since the Movie Super Size Me in 2004? I haven’t eaten anything from a McDonalds. The only time I go there is for a McShyte or McPiss. 😁

  3. SweeperMEMBER

    can’t understand the bewilderment at the poo joggers antics.
    It’s exactly what I would expect from the standard corporate exec with deep libertarian conviction and hatred of the commons.

    • Quite right. The business lobby groups should be championing it as a new productivity boost for the C-suite. Combining fitness with ablutions must yield an efficiency dividend which goes straight to the bottom line as hack media types say. Jennifer Westacott and Innes Willox out ‘pooging’ could be the leadership example to really lead this nation.

      • SweeperMEMBER

        Absolutely. He is saving his employer the water etc. expense and his valuable time charged by the second. And the economy also gets the benefit of his marginal productivity measured in his enormous salary.
        And I’m sure he is never late for work or for a meeting.
        A true example for anyone else wanting to climb the corporate ladder.

    • Sweeper,

      How long have you been lurking behind bushes building personality “profiles” of public poopers?

      Interesting hobby!

      Have you been finding a few number 2’s around the hot desk?

      FIRE and private banks in particular are packed with the profile you describe.

      • SweeperMEMBER

        I have never heard you say a bad word about an exec.

        …just the legal fictions they hide behind