ASX, Australian dollar, banks end year circling drain

See the latest Australian dollar analysis here:

Macro Morning

The AUD has a little bid this morning as markets shake off the Trump nausea:

Bonds are bid again:

XJO is circling the drain:

Big Iron is up on hope of stimulus that is not coming:

Big Gas is up on hope for OPEC cuts that aren’t coming:

Big Gold is down amazingly:

Big Banks ex-teflon CBA are at more new lows. WBC is shaping as the fall guy of the bust:

Big Realty is getting hosed:

And that’s all she wrote for 2018. Avagoodbreak. Be safe and thanks for reading.

David Llewellyn-Smith
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  1. “Big Gold is down amazingly” — – I presume that should read “doing” amazingly ?
    The current POG in Australia at Perth Mint is $1,790.90 to Buy & $1,783.12 to sell @ 9am WST.
    That’s fantastic — more to come.

    • If I think of the banks as utilities actually producing very little, then I see all of them vulnerable it change including nationalization.

  2. Global Armageddon for investors after nearly £4.8 trillion wiped off world stocks in markets bloodbath … UK Telegraph … behind paywall …

    Investors have suffered a year of ­Armageddon in a global assets slump that has left no corner of the market untouched.

    Just under $6 trillion (£4.8 trillion) has been wiped off the value of world stocks in a ­markets bloodbath that threatens to end the longest ever bull run. The rout has knocked 13pc off the FTSE 100 in 2018, the index’s worst yearly drop since the financial crisis.

    A record 93pc of a wide-ranging ­basket of assets – including stocks, bonds, commodities and credit … read more via hyperlink above (behind paywall) …

    • As the collateral evaporates the debt remains and is toxic to finance growth and jobs.
      This is the feedback loop from hell of reversing it seems unlikely and it seem to be gaining momentum

      • The Traveling Wilbur


        +100. Exactly.

        I’ve been watching the (mentally predicted) ‘no growth from no longer negative growth is still no growth’ feedback loop for over a year now. Behaving just as predicted. Markets *just* starting to wake up to it, or it could just be brexit. But for the rest of the world your TFLFH hits the nail right on the head. And we really only got there in the last couple of weeks… so very well spotted.

        And Merry Christmas.

        Edit: ‘no growth’ fedback loop is in the Euro Zone. And a *very* Merry Christmas.

      • The Bank That Almost Broke Britain – Documentary [HD] … BBC / YouTube

        Published on Oct 3, 2018

        Ten years on from the global financial crash, this documentary tells the extraordinary story of how a small Scottish bank briefly grew to become the biggest in the world before collapsing and triggering the largest financial bail-out in British history. It focuses on a single day, 7 October 2008, when the Royal Bank of Scotland collapsed and almost took the entire UK banking system down with it. This dramatic financial thriller, set over 24 hours, is intercut with the story of the amazing rise and shocking fall of RBS. … view and read more via hyperlink above …