Australian dollar, ASX sink on sovereign risk

Thursday, 23 August 2018

The Australian dollar has been hammered through the morning as Canberra chaos begins to unnerve the most hardened Australian bulls:

Bonds are bid:

The ASX is down:

Big Iron is down too. FMG is sunk:

Big Gas is mixed with the appalling STO profiteering to Heaven:

Big Gold can’t find a bid:

It’s a Big Mortgage bash on mushrooming policy risk:

Big Property didn’t get the memo:

Looks to me like the Coalition “grownups” are delivering markets a nice dose of sovereign risk.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.