Macro Afternoon

Mixed results across Asia today with Chinese stocks treading water, Japanese bourses retreating and the Australian market floating along even as the Aussie dollar keeps appreciating.

The Shanghai Composite is down by only 1 point to 2564 points as confidence is wavering over a trade deal, still clinging above previous support at 2500 points.  The Hang Seng Index is equally stuck, only up 0.2% after its epic rise yesterday, currently at 26510 points. This is still  above previous support at 25600 and sets up a new rally to get back above the previous highs at 27000 points:

US and Eurostoxx futures are down slightly going into the London open with the four hourly S&P 500 futures chart showing a reluctance by the major bourse in making any headway against the  psychologically important 2600 point level:

Japanese stocks had a poor session as the rising Yen proved too much a headwind, with the Nikkei 225 falling more than 1% to remain just above 20000 points, currently at 20154 points. The USDJPY has slumped following the weakness in USD overnight, now below the 108 handle and heading towards key support at the trailing ATR level but negative momentum has decelerated here so we could see a swift uptick on mean reversion:

The ASX200 continues to do well despite the higher Aussie dollar, lifting nearly 0.3% higher to 5795 points. The Aussie dollar has also building on its recent gains, almost up to the 72 handle against USD, with a steady series of daily highs for sometime now, but about to hit heavy weekly level resistance:

Comments

  1. Banks won’t lend for Opal Tower apartment buy as 16pc loss is estimated
    https://www.afr.com/real-estate/banks-wont-lend-for-opal-tower-apartment-buy-as-16pc-loss-is-estimated-20190110-h19xed
    [By Matthew Cranston
    Owners of apartments in the Opal Tower at Olympic Park in Sydney may have to wait at least two years before selling out and face losses of more than 16 per cent say valuers who have issued a lending alert on the building to their bank clients.

    Leading valuation firm Preston Rowe Paterson said further issues were likely to stem from the Opal Towers incident including strata corporation legal actions, “likely drops in rent” and “increased insurance premiums”.

    “Preston Rowe Paterson is aware that at least one lender will not be taking any additional mortgage security within the development until further notice,” chief executive Greg Sugars said.]

  2. This property just listed looks familiar.
    https://www.realestate.com.au/property-house-vic-maldon-130230022
    $690,000 – $710,000

    An example of regional Australian property prices going nuts…

    However in 2018 they obviously failed to sell..
    https://www.news.com.au/finance/real-estate/melbourne-vic/maldon-gold-miners-cottage-renovated-by-travel-guides-tv-series-couple-for-modern-living/news-story/f5b3b4be2931ac10e5c4fa2d5079e0e5

    The three-bedroom home on 2263sq m in Maldon, which is 120km northwest of Melbourne, has a $695,000-$764,500 price guide.

    A mild discount you could say, but that’s if it sells of course.

      • C.M.BurnsMEMBER

        I reckon Latham needs his teeth kicked in.

        And the video I shared had a very clear definition of what a nazi is and I reckon you’ll struggle to make a case that McInsey are Nazis, per your multiple assertions earlier this week.

    • ErmingtonPlumbingMEMBER

      “I reckon Latham needs his teeth kicked in.”

      Thats something a Nazi would say!

      I stand by my belief that Coporations heavily supportive of Authoritarian regimes are infinitely more “Problematic” to the Goal of eliminating “Thuggish” and ” Nazi like” behaviour across the globe.
      The Nazi’s were more than a bunch of swastika wearing racists doing silly sulutes. The Main and most important difference between those St Kilda “not Nazis” and “the Nazis” is POWER.
      Infact it was Establishment Power (without majority public support) in 1930s Germany that handed power to the Nazis, prefering them over leftists and Commies.
      So you like to obsess over the “Nazi definition” of what they were before they had the POWER to do the tragic and legacy leaving damage that they did. (A political grouping of mostly young malcontented racist piss heads, who were not much more racist than most people in the 1930s)
      Where the Nazis “really earned their reputation” was after Establishment types handed them POWER, you know, by McInsey advised types.
      Western Coporates like McInsey were falling over eachother to “advise” support and enable the Nazi regime, indeed its theroised that the Holocaust could not as efficiently identified and slaughtered 6 million jews without the help of the IBMs punch card census data collection.
      So to in todays world, it is Chinas dictatorship that most closely resembles post 1933 Nazi Germany,….a resemblance orders of magnitude greater than the shennangians seen on St Kilda beach and McInsey have their Grubby hands all over this dictatorships rise,…making them, in my view, the Greater “Nazi” threat.

      https://en.wikipedia.org/wiki/IBM_and_the_Holocaust

  3. Along with cheaper housing in Canberra, a lower AUD, climate change and sensible governing the arrival of the EV wave always seems just around the corner. I’ve been reading articles about the transition from ICE to EV for what feels like yonks. But anyway here’s another, with hundreds of billions to be spent, mainly in China.

    https://graphics.reuters.com/AUTOS-INVESTMENT-ELECTRIC/010081ZB3HD/index.html

    I remember reading that when it comes to motor vehicles unless it catches on in the US then its liable to not be a game changer, examples being diesel motors and small commuter vehicles.

  4. https://www.rt.com/news/448426-yellow-vests-financial-bank-protest/

    This is the way to do it…………just keep taking those Euro’s out of the French banks …….I bet they restrict withdrawals { a dry run for us when the banks tank here )……..It is either that, 1968 Paris student riots or 1848 Paris Commune. Pity they hadn’t kept gold coinage…..I feel the bosses will get around this in the presence of fiat……they wouldn’t with gold.

      • All of them, they are still on the central bank teat worldwide…….what little interbank activity is left is mainly for show. Fortress balance sheet = no trust between banks, that is why the Eurodollar market keeps running out of puff every two years………banks won’t share their balance sheets with others to get the loans really flowing, they know how bad theirs is and assume others are the same.

      • Not my point nyleta, I’m referring to taking money out banks and your suggestion. I would also note the gold standard rhetoric, history is not supportive of that proposition.

        Now if you want to talk about Macron, neoliberalism, and the outcome of austerity repeating itself we can start to have an informed discussion and not pin the ideological tail on the event donkey game.

      • ChristopherJMEMBER

        Yes Stomper. No one is doing You Tubes on delivery of new cars like Tesla customers… Build quality is like British Leyland. Saw one guy reveal multiple scratches in the paint that would have seen the vehicle rejected by a real auto maker.
        The banks are going to call him in 2019

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