Macro Afternoon

Risk markets have reacted positively to the summit in Singapore with green across the board on stock markets. The USDJPY risk proxy has made a new two week high, with S&P futures also suggesting a new monthly high that should presage a further rally on Wall Street.

The Shanghai Composite had a great session, lifting nearly 0.8% to close at 3078 points, ready to tackle short term overhead resistance at 3100 points. The Hang Seng Index did about half that, up 0.4% to close at 31194, bouncing off short term support at the 31000 point level and poised to breakout:

S&P futures are up alongside Eurostoxx, pipping above the February highs suggesting we’re in for another positive session tonight:

Japanese stocks lifted exactly together with both the TOPIX and Nikkei 225 closed 0.3% higher at 22878 points, almost matching the May high. The USDJPY pair however did beat its former high, lifting well above the 110 handle as momentum looks a little overcooked here on the four hourly chart, suggesting a small pullback to the high moving average:

The ASX200 eked out a small gain, up only 0.15% to finish at 6054 points.  The Aussie dollar is still dicing with the 76 handle and looks set to push below that level tonight as the USD bulls circle the gate:

The data calendar gets busy tonight with the German ZEW survey plus US CPI for May.


  1. Who was it that was waiting for SLX to fall in order to load up? Could be time ?! – what happened today?

      • Super Phoenix

        Of course. I have built up enough financial flexibility over the last few years. I can top up more if it goes lower.

      • Super Phoenix

        The volume was only 2.65m. Not many given the announcement. It will be interesting to see how many of these were by Global X.

      • Super Phoenix

        You will have to wait for a day before they update the holdings so that you can compare. My strategy going forward will depend on how large the unforced selling volume was.

        As for IQE I think SLX will turn cash flow positive in a few years.

      • Come to think of it, SLX can now offer Global X to buy the 14.4m shares for $2.9m. It is sitting on a large cash pile after all and with the GLE obligations gone the cash burn will become minimal.

      • Cyclone Ranger

        +2. Though I suspect we are the only 2 who’ll know what the extra point’s for. No one else reads my stuff. Quite miffed that haroldus’ semi didn’t generate any interest. ; )

    • Depends on the asset strata supplying demand for it I would think. Currently doing a lot of work for the top 10% where dual income over 100K PP and decadel portfolios provide along with intercity ring location a risk pass for RE referbs and extensions. Yet these are to live in for some time and not premised on flipping e.g. seeking yield.

      • What is cartel about making income and having a well distributed asset portfolio as a family.

      • Got any data or evidence to support that self evidence perspective or is it just rhetorical gibberish….

        You sound a bit commie to me.

      • Barry McKenzie

        Perhaps one should consult a Dictionary as to the meaning of non sequitur before commenting further old boy.

      • So without much factual response one willy nilly throws out an insinuation about non sequiturs. I am I to understand that you can blanket all things without showing how you arrive at it. I mean “a conclusion or statement that does not logically follow from the previous argument or statement.” is arrived at by how in your logic.

        Firstly I did not respond to a previous statement of my own, just an observation of currant environmental factors in my line of business accentuated by a few decades of multinational and international experience.

        Have you some grasp of formal logic and if you don’t mind if I ask where you acquired such skills.

      • Here let me attempt to help.

        “Perhaps one should consult a Dictionary as to the meaning of non sequitur”

        As a stand alone its just an emotive plea, you see you have to give it foundation, just saying it is vacuous. Worst is it is a milquetoast attempt a diminishing personal qualities without quantification, this is something say Bernays would understand quantitatively.

        Now after all that rubbish would you care to respond to the information and add to it or to offer something that is countervailing, I care not depending on the veracity of it.

      • Cyclone Ranger

        Just answering the question you asked, and minding my p’s and q’s – even if someone’s understanding of punctuation seems a little jejune by comparison?

      • Not really fussed about punctuation on blogs but for those that do I always like to point out Shakespeare or more modern gritty writers.

      • Cyclone Ranger

        Personal biases and poor excuses for shoddy work are of little interest to me.

      • Barry McKenzie

        So the pseudo-intellectual equivalent of “oh no it’s not” for a response… but I wouldn’t have bothered chum, he’s clearly just trolling you. Successfully from all appearances.

  2. – Gold and Silver can’t make up their mind. And those two metals give a good indication of what the credit markets are going to do.

  3. – The (economic) impact of the summit in Singapore is overrated. Much ado about nothing.

    • yeborskyMEMBER

      I think that’s about right, yet markets/gold (which hasn’t moved much today, despite the wonderful news) will probably move in opposite directions if there’s any sudden bad news. The re-unification of the Korean Peninsula, should it be proposed, would be a very interesting exercise. It could so easily bring the whole thing undone and require a further meeting of these great, megalomaniac minds.

      • C.M.BurnsMEMBER

        On a recent Trending Globally podcast with Mark Blythe, Mark stated that a unified Korea is China’s worst nightmare, and by extension isn’t something it will allow to happen. I haven’t read up on this further but it’s an interesting variation to the common thought that china’s worst nightmare is a war on the peninsula with a million plus refugees on the border.

      • – Based on my personal information the countries who are involved in the problem called “North Korea” don’t want
        1)a war
        2) to lift sanctions on North Korea (for several geo-political reasons)
        – However if I take all the things the US has been saying and replace the word “North Korea” with the word “China” then it becomes clear what the REAL intentions are of the US.

      • Cyclone Ranger

        And if I take the latest UN health report on complex-carbon chains of nucleic fatty-acids and replace occurences of the word “exercise” with “alcohol consumption”, I’ll be very happy for quite some time. Not sober. But happy.

    • You’d think they’d apply the land tax broadly and indiscriminately when it comes to non-voters. Not everyone of them could be a campaign contributor.

      • How does a land tax fix wages vs productivity and how that effects the demand for credit, which IMO is directly correlated to RE prices by risk weighing and mechanisms to off load said risk.

    • He gets better looking in each video, I wonder if Reusa is getting uglier at the same time?

  4. Cyclone Ranger

    Dear Sally MacManus, just a thought, but why not support the company tax cuts. And then 3 years from now, when wages are still stagnant, start the biggest synchronised strike action Australia’s ever seen if they aren’t rolled back (keeping any sweetners that were thrown in along the way).

    Win, win, win I would have thought.

    • Yeah that worked out for occupy and other global mass protests, instantly relegated to hippies….

    • drsmithyMEMBER

      Yes, I’m sure the 10-15% of the workforce still unionised going on strike will be terrifying. Especially since there’s a fairly good chance most of them couldn’t afford to go on strike because they live paycheque to paycheque.

      • Cyclone Ranger

        True. But not the whole picture.

        Think nurses, ambos, firies, drivers, ports, customs and baggage handlers. And cleaners. Even 5% in the right places would be more than enough.

        If it moves, freeze it. If it needs removing from the bowl, leave it to management.