Macro Afternoon

Asian stock markets have reverted to a risk-off attitude mainly due to the forthcoming FOMC meeting tonight or in a very short term reaction to Trump’s extension of his trade war to China, with tariffs likely to ahead on Friday.

The Shanghai Composite had a poor session, closing over 1% lower to 3047 points, accelerating that selloff after the long lunch session, again closing below short term overhead resistance at 3100 points. The Hang Seng Index did about the same, down 1% to close at 30787, closing below the low moving average and almost crossing into negative momentum territory:

S&P futures are flat alongside Eurostoxx, as everyone awaits the FOMC meeting. This is looking like its running out of puff, but I’m positioned either side of this:

Japanese stocks escaped a selloff as Yen buyers stayed away until later in the session. Both the TOPIX and Nikkei 225 closed about 0.4% higher, the latter closing at 22966 points, almost matching the May high. The USDJPY pair made a new intra-week high, reaching the 110.60 level before coming back slightly. Its still above the session highs that formed the bullish ascending triangle on the  four hourly chart, and momentum remains intact, so this should still be a bullish signal – but all bets are off with the Fed meeting!

The ASX200 hard a day as bank stocks sold off, most notably CBA which is looking poised to go into a major corrective phase. The bourse finsihed over 0.5% lower at 60230 points as a result.  The Aussie dollar is still below the 76 handle in a pause, but still looks set to push well below that level and possibly down to 75 cents proper:

The data calendar is focuses squarely on the FOMC meeting tonight plus we get UK CPI and a DOE inventory report.

Comments

      • TailorTrashMEMBER

        Doctors and Lawyers only acceptable ……the kid up the back will probably be a banker…….and who needs economics for that ?

      • Cyclone Ranger

        @JR&TT

        No not a skip. And yes you looked carefully, but you did not see (but you still saw more than most).

        This kid (who the producer/editor for this piece should swing for publishing photos of) is in ‘isolation’ in a classroom that despite appearances carefully stagemanaged by those with marketing ambitions dearest to their soul, failed to disguise the fact that it’s necessary for senior students to sit in moulded-plastic chairs, and further that the school feels it’s​ necessary to *spray paint* what I can only assume is a classroom identifier on them to prevent, ahem, disruption.

        Dear fish-on-a-bicycle (FOAB)… If I was that kid and trying to learn something about economics (and didn’t happen to speak fluent Cantonese) I’d be doing a ‘skip’ too. Just like her.

    • Cyclone Ranger

      +100

      ROFL.

      Perhaps their third year project can be a detailed analysis on the necessary distribution of lampposts across key postal codes within the greater metropolitan areas?

      [queue … in 1, 2, 3…]

  1. Cyclone Ranger

    Tom Piotrowski is back spruiking CBA (disguised as a finance update) on 10!

    A) He’s had some much needed beard maintenance.
    B) Yay! (I’ve missed Tom, and was a little concerned)… queue Coming…
    C) It must mean CBA reckon they are through the worst of the RC revelations (otherwise they wouldn’t waste the money) and that is significant.

  2. Lol. saw this and thought of our favourite anti-monetarist

    “Watch out for this. Refusing to discuss one’s terms because the point is “obvious,” insisting on using euphemisms rather than plain speech, relying on a very specialized vocabulary and being unable to express one’s thoughts without it, using speech to vilify persons rather than to clarify positions: these are all clues that you’re dealing with ideology, not principle.”

    It’s not ideology, it’s just that i’m always right…

    • Lol, aj. There are plenty of these types.

      But, to be fair, one needs to be able to think clearly before one can express clearly. Assuming that one actually has a message to express.

    • Lol…. back at you aj.

      Corruption starting at the first point of information, where ideology is clearly the driving agenda – confounds some I guess.

      But then again your recanting of the statement above, without all the other information related to it, and then deploy it out of proper context seems more in context with the original thrust.

      The meta it burns…..

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