Macro Afternoon

A very dour mood across in Asia in response to the overnight slump on Wall Street, although the mangnitude wasn’t the same, the intent of taking risk off the table before the FOMC meeting is paralleled here. The Aussie dollar finally found some life but it’s playing catchup as USD is sold off across the board.

The Shanghai Composite is down over 1% going into the close, currently at 2570 points as previous support level at 2600 points becomes a distant memory.  The Hang Seng Index is down about the same to 25806 points with a very bearish candle here on the daily chart, with the moving average band taking a dive as support at 25600 comes into play very soon:

US and Eurostoxx futures are off about 0.3% going into the London open, with the four hourly S&P 500 futures chart showing how dire the situation is on Wall Street as it makes its worst December in a very long time as a shutdown looms:

Japanese stocks were the worst off due to a much stronger Yen with the Nikkei 225 falling over 1.6% to 21145 points now dicing with terminal support at 21000 proper. The USDJPY pair gapped continued its falls despite being so oversold overnight, now at the mid 112s and about to reach into the previous weekly lows at just above the 112 handle:

The ASX200 fell into line, taking back all of the previous gains by falling over 1.2% to 5589 points, continuing to dice with terminal support at 5600 points, as traders get very nervous going into the FOMC meeting and the long Christmas break. The Aussie dollar has finally woken up, almost breaching the 72 handle so watch out above when the London session opens soon:

The economic calendar has a couple of mid level releases to watch out for, namely the German IFO business survey and then US housing starts and building permits for November.

Comments

    • ChristopherJMEMBER

      Thank you, V. Hard to start a life if they are the sort of jobs available – and find your own accommodation. ha…
      Yeah, this slow slide down doesn’t feel like a classic bust/crash. More like the smart people are getting their gains out, slowly. What is it, selling into a rising market – there’ll be a finance term for it??

  1. – Regarding the FED: instead of “one and done”, I think the FED will do “none and done”.

  2. I had a look at how many properties were either for rent or for sale currently in Melbourne’s new land estates. Looks like there is a huge amount of “investors” swarming all over these areas. These are the areas with the least equity, lowest incomes and almost no jobs. Also I threw in an example of an established suburb of Mulgrave for contrast which is similar in regards to its percentage of detached housing being quite high (comparable to these land estates).

    Mickleham
    https://flic.kr/p/2dyxCgL

    Jubilee Wyndham Vale
    https://flic.kr/p/RveUnb

    Saltwater Coast Point Cook
    https://flic.kr/p/RveUvN

    Upper Point Cook
    https://flic.kr/p/2cfpnVM

    Mulgrave (established)
    https://flic.kr/p/2cfpo7D

  3. I had a look at how many properties were either for rent or for sale currently in Melbourne’s new land estates. Looks like there is a huge amount of “investors” swarming all over these areas. These are the areas with the least equity, lowest incomes and almost no jobs. Also I threw in an example of an established suburb of Mulgrave for contrast which is similar in regards to its percentage of detached housing being quite high (comparable to these land estates).

    https://flic.kr/s/aHsmoFBn79

    • Good work as always Shawn. Although I would guess block sizes in Mulgrave are larger so it will look less dense partly for that reason?

      • Block sizes are bigger in Mulgrave but many of those land estates have areas still to be developed so it probably evens out.

    • The bottom end of the market always provides the best returns as an investment. People higher up the ladder who are renting actually have an ability to buy so if the rent is to high relatively then they will simply buy. Property on the fringes and beyond is often rented by people who are simply unable to obtain a loan no matter what and can be cheaper to buy than rent. So i’m not surprised there is still interest in the fringes.

  4. Can I report and write on a r.e agents Google reviews to report unethical behaviour?? Eg getting an old man with dementia to sign for a house well under market value and lying to neighbors to say aa house can’t be knocked down when it can be? Will I get reported for libel against said agent? How can I write an untraceable review to let everyone know what a slimeball he is?? Can I report him??

    • Mining BoganMEMBER

      I can’t answer any of that but I’m after your opinion on one matter.

      Does it look like he will burn? You know, if he accidently got set on fire or something?

      • there is no way i could lie and cheat an old man out of money like a smooth talking agent…literally no ethics. I hope his business fails

      • Mining BoganMEMBER

        Well, if you do go through with it make sure you email a link to some nice young journo trying to make a name for themself.

    • TailorTrashMEMBER

      I’m an old man and I get lied to and cheated on all the time .
      I accept this is the new more vibrant 24/7
      Straya ….. profits for all … except for old men .and women ..
      ..I like to let them think they have managed to complete the ripoff …. then send them
      a statement of the facts in a mildly threatening tone ….
      …love to watch their stumbling apologies and look of complete guilt ……
      .as Clint said in one of his movies “there are some people you just shouldn’t fcuk with”

      • I’m a young(ish) man and it’s the older folk that try to hooodwink me. Caucasian at that. When I’m older the younger folks will try their luck. By that time I hope to be an important demographic so that the system screws them over on my behalf.