Macro Afternoon

A relatiovely positive session across stock markets in Asia today to finish the week, with the ASX200 the only laggard as the Australian dollar breaks through the 72 cent barrier against USD.  Chinese stocks are up slightly as the Yuan makes a near six month high against USD as the PBOC strengthens the local currency as the US trade talks keep rolling on.

The Shanghai Composite is up by about 0.4% or so going into the close, stalling mid session before confidence came back, currently at 2545 points.  The Hang Seng Index is only up about 0.2% or so, currently at 26585 points, building above previous support at 25600 and setting up a new rally to get back above the previous highs at 27000 points:

US and Eurostoxx futures are up slightly going into the London open with the four hourly S&P 500 futures chart showing another attempt to breakout above the psychologically important 2600 point level. Having made five positive sessions in a row, can it do it again tonight?

Japanese stocks finally had a good session despite a wavering Yen with the Nikkei 225 up nearly 1% to clawback the previous losses, and remaining above 20000 points, currently at 20350 points. The USDJPY has sunk again following the strength in USD overnight, still above the 108 handle but looking liked heading towards key support at the trailing ATR level again:

The ASX200 fell as the Aussie rose, finishing the week with a poor session, closing nearly 0.4% lower to 5774 points. The Aussie dollar continues to build on its recent gains, now through the 72 handle against USD, with a steady series of daily highs for sometime now, but about to hit heavy weekly level resistance:

The economic calendar finishes the week with a very important print – the latest US CPI print, plus new home sales data.

Have a good weekend, I’ll be back on Monday with Leith.

Comments

  1. Dodgy electrical installations threatens to blow up LNG Platform off Kimberly Coast:

    https://thewest.com.au/business/energy/secret-docs-reveal-deadly-blast-risk-at-63b-lng-plant-ng-b881069411z

    “Failures at the installation and initial detailed inspection stage has raised doubts over the competency of the workers performing these tasks. This has created a unique circumstance where gas has been introduced to the facility for commissioning and start-up when a number of known electrical non-compliances exist.”

    Unprecedented in LNG history

    • “Kentech inspected 747 of the platform’s 44,000 electrical fittings in hazardous areas and 54 per cent did not pass for a variety of major and minor issues.”

      Wow, just wow.

      “The audit report said the number of devices to be fixed on the platform was unprecedented in the Australian LNG industry”

  2. The Traveling Wilbur

    Why don’t the rest of the band catch the bus home with the drummer after gigs anymore?

    Because it takes him five-minutes to tap-off.

    • Gav that’s freakish. Just last night I was thinking I should google this interview (having never watched it) and here you have posted exactly the link!

      What’s scarier is that I knew what your link was before I clicked on it. I just knew.

      • Listening is good, but it’s the body language of spivs that I like to watch most as they squirm in their seat.

    • What’s hilarious/depressing is that every … damn … time … the boosters always say “we are different” The old “fundamentals” get’s wheeled out and when it all comes crashing down noone apologises and off they go as if nothing ever happened, cheering the next bubble on.

  3. Good news everyone, opal investors will get bailed out – everybody wins!
    https://amp.theaustralian.com.au/national-affairs/state-politics/taxpayer-may-foot-the-bill-for-sydney-opal-tower-defects/news-story/3dd1783e234d058af2d5e36a9dd0f06f#click=https://t.co/XpZN6LVXzK
    “The NSW government may be on the hook for millions of dollars to fix the cracks and defects in Sydney’s damaged Opal Tower because of a law that exposes it to legal action as owner of the land”

    • Disgusting. Why am I not surprised that the entire structure is a legal honeypot designed to enrich and reward these parasites?
      I was stupid enough to think it was a structural failure. Turns out it was a legal failure from the start. Suppose the state government will use this as an example to all potential foreign buyers that thier money is safe.

      Again the idea of a Minsky failure mode is one that rewards the suits who are the last to know.

    • Privatise the profits, socialise the losses. That’s how we go from a Goverment with low public debt, to high public debt.

      • The Traveling Wilbur

        Yep. Yellow vests everywhere. OH&S will be insisting everyone returning to Opal wears one at all times.

        Safety first​!

  4. eating some steamed brocolli, carrots, green beans and a big old glass of refrigerator chilled tap water

    waiting for papa skip to get me a bowl ‘o strawberry ice cream like he used to eat in 1947