Macro Afternoon

A hotter than expected Chinese CPI print has lifted stock markets outside of Japan, even as USD lifted against Yen throughout the session. Most action in currency markets was relegated to Kiwi after the RBNZ announcement this morning while gold continued its minor blip higher.

The Shanghai Composite is having another volatile session, lifting almost 2% after the previous loss, currently at 2737 points on the back of the CPI print. The Hang Seng Index also advanced, closing 1.3% higher to  28705 points, remaining above previous terminal support at 28000 points. Last week’s ominous breakdown on the daily chart still remains in play but this swing higher may turn into a substantive bounce:

S&P futures are upslightly alongside Eurostoxx with the latter indicating a minor 0.1 to 0.2% lift higher in The City. There’s still daylight above to the 2880 level here for the S&P500 if the former high at 2860 is broken again:

Japanese stocks have finished in the red again, despite the poorer showing by Yen, with the Nikkei 225 closing 0.2% lower at 22598 points, still vainly trying to get out of its sideways move on the daily chart. The USDJPY pair has come back so far in the Asian session, briefly touching the 110.70 level before rallying back up to just under the 111 handle. This still looks weak for mind, with the high moving average not under any pressure here:

The ASX200 advanced again, lifting nearly 0.4% to close at 6297 points, almost able to breach overhead resistance at 6300 and displaying a lot of buying support below. The Aussie dollar continues its uptick, helped by the abandonment of Kiwi by other crosses, hitting a two week high at the 74.50 mid level going into the City open and ready to accelerate higher:

The economic calendar is again relatively quiet tonight with US initial jobless claims.

Comments

    • The 21 sqm studio was sold fully furnished so it could be lived in or rented out right away. It was fetching $275 a week or just over $1000 a month.

      Realestate.com.au’s repayments calculator estimated that a property price of $98,500 would mean a deposit of just $19,700 and with an interest rate of 3.69 per cent over 30 year term would mean a monthly mortgage cost of $362.

      The body corporate fees of around $2,780 a year include electricity and high speed internet.

      That $362 p/month must be if using an interest only loan and a 30 year period! And who gets 3.69% on those now?

      @7.5% interest rate p&i it would be closer to $659p/month

      Add on the strata mate at $231 extra per month (so we’re at $890 p/month in outgoings)… then maintenance etc.. if shit goes wrong / vacancy etc…

      Geez they really talk it up don’t they? I guess if you believe interest rates will remain at 3.69% forever it will be ok.

      Better than a term deposit, but you also have stamp duty / legal fees etc.. and it’s a box at the end of the day. Ok for scummy students.

      • It is a uni student apartment building. I bet it works like the serviced apartment scam where you can only lease via the building managers. The managers would own most of the apartments and would give theirs priority. Yours will only get leased if it is fully booked and no doubt a hefty management fee to come out of the rent as well.

      • The Traveling Wilbur

        Jeeeeeeeezzzz… you two… there’s nothing wrong with scummy students

        that some soap, water and a paper bag won’t fix.

  1. The Traveling Wilbur

    “Captured APRA loosens investor mortgage cap for mad Macquarie”

    Just a thought, but if there was no demand, this relaxing wouldn’t be needed.

    • There is obviously demand, does that mean regulators charged with ensuring financial stability should just throw that out the window?

      There is a demand for cheap labour cash in hand for under award rates too… should our regulators therefore acquiesce?

      • The Traveling Wilbur

        @A2 Not arguing the merits of the restrictions, only those who, contrary to your first sentence, would say that demand from that cohort is dropping off a cliff faster than a transient lemming on non-generic sleeping disorder medication.

      • I don’t think demand as in “desire” is dropping much, it’s more a drop in effective demand. Anecdata gives the clear impression there are plenty of on-the-edge investors who want to HODL and so are desperate to roll over / refi to a new IO term. They are falling foul of iO speed limits or lending standards. There’s no doubt demand is there, they feel like holding is smart and they are only selling if “forced to by APRA”.

        No helping some people.

      • Mining BoganMEMBER

        Clearances remain steady eh? I guess they will remain steady when you get four sales in a suburb where there were no scheduled auctions.

    • True, but what rate and terms and are they really adding to the total (of all fin institutions) or are they refugees from other banks that have said nyet to extending.

    • See, any decent person after that kind of a public rogering would have probably bit solidly of the business end of a nailgun and pulled the trigger.
      This guy will just show up on TV again and again and will just Business-As-Usual for the rest of his pathetic, corrupt life.

    • The whole thing is just too bizarre. Keating reckons Turnbull had no judgement, but this is too much.

      I have in mind something darker – something involving Abbott and the neo-cons putting this grant as a condition for support, or at least, not opposing, something else. That way, the coal-lovin’ neo-cons get to line the pockets of their corporate buddy expenditures for PR (Peabody saves the reef!), coal gets a free pass (’cause they’re also aiming to develop corals that survive higher temperatures), Adani gets closer to the line, and if it all falls in a heap then ti’s Turnbull with the great turd on his head. On borrowed time.

      • The whole idea that spending $700M (the bribe they promised for not getting it on endangered list) to save a 3000km barrier reef that is dying because of rising sea temperatures and increased acidity due to CO2 making it more acidic and eating the skeletons of snails and corals is what is absurd. The fact they gave the money to a so called non-profit staffed and supported by FF industry heads makes it off the charts sh1tting in your face and telling you that you love it.

  2. TailorTrashMEMBER

    I’m driving through what’s left of the leafy streets of Wahroonga this morning on a beautiful late winters day.( the apartments slowly creep down the streets )
    I spot 3 elderly Chinese ladies dressed in a way that suggested they were part of the great mainland tourist boom .
    I was pleased to note they were out and about seeing the sights . The particular “sights “ they seemed most interested in and were engaged in very animated conversation about while they photographed it from every angle was a very ordinary Aussie suburban home .
    Small wonder that all those great tourist numbers are not being matched by big spend in the tourism industry proper ….it’s now a FILAH industry …..fly in look at houses
    ……but then the tourism and education “industries” now don’t exist without throwing in a little bit of the country ……….like the proverbial steak knives.
    Poor Straya ……….one day it will be a country without a home .

    • Not only that, but they probably stay at an AirBnB owned by a mainlander and only eat at Chinese restaurants owned by mainlanders. (we-chat would tell them to) Total money going into the Oz economy == 0

    • No no no! MB tells us that the Chinese are GONE! Ignore the reality in front of your face. MB is convinced that there are no more Chinese buying Australian homes.