Macro Afternoon

An upbeat finish to the week here in Asia with most stock markets in the green going towards the close, with risk proxies USDJPY and Aussie dollar moving higher in unison to a risk on mood. The biggest mover of the day is Pound Sterling as reports swirl about a better “deal” deal for Brexit. Stay tuned!

Chinese shares are rising with the Shanghai Composite currently up 0.6% to 2606 points and may finally be gaining some traction. The Hang Seng Index is powering ahead, up over 1.3% to 27488 points, bursting through the previous false break high above 27100 points:

US and Eurostoxx futures are up 0.5% or so with the four hourly S&P 500 futures chart looking to rally off firm support at the 2630 point level where the BTFD crowd is likely to step in soon here:

Japanese stock markets are back in unison and rallying strongly with the Nikkei 225 currently up over 1% to 20820 points. This is due to the push higher in the USDJPY pair throughout the session, poised here right under the 110 handle and ready to make a new weekly and monthly high:

The ASX200 is the laggard but relatively speaking is doing quite well, currently up 0.7% going into the close at 5911 points. The Australian dollar has found a bottom, probably because of all the bearish calls out today with a solid bounce off the 71 handle but can it be sustained:

The economic calendar would normally close the week out with December durable goods orders and new home sales data from the US but with the Trump shutdown ongoing, no luck there.

Have a good long weekend, I’ll see you all again on Tuesday with the return of Houses and Holes.

Comments

  1. The Traveling Wilbur

    Apparently there was some confusion earlier today with the choice of photo (Slash) accompanying the AMP profit figures release. Hopefully that’s clarified any remaining ambiguity.

    Personally, I’m just grateful Chris chose not to use any imagery related to Todd Carney. As I’m sure are we all.

  2. Power cuts again!

    I would not call yesterday anything other than a complete stuff up in Victoria and SA. How can it be anything other. The cost was simply huge.
    Why was the battery in SA, Allowed to charge and discharge during periods of demand that saw the price at its max.
    The battery was adding to the demand, people and industry asked to stop useing power.
    Why did SA have a price so high, when they spent so much money after 2016, to make them selves more robust?.
    I did not see during the high demand times that SA was being powered by 40 odd% RE, it looked like a lot less, most the bar chart was RED, which means gas?.

    https://reneweconomy.com.au/grid-held-together-by-solar-load-management-as-coal-fails-in-heat-18324/#comment-4306142154

    An interconnecter was down again!

    https://www.smh.com.au/national/victoria/victoria-exported-power-to-nsw-during-blackouts-in-extreme-heat-20190125-p50tp6.html

  3. The Traveling Wilbur

    Four non-racist zombies rode in on white horses to have a race to see who would be the ruler of an integrated society free from racialists; one nation for everyone if you will.

    Bart (Simpson) was to judge it, but the event was cancelled due to snow. A unique event for the desert which had never seen a snowflake before.

    Fortunately, thanks to an industrious dog called Boomer (who was coming into heat as it happens) a secret passage was discovered which led to a hidden valley where the zombies could practice and master race skills as required before the big day.

    And the race was run – a clear black and white result – and the four zombies lived happily ever after in their hidden valley adjacent to Israel.

  4. The Traveling Wilbur

    Hmmm… looks like Spambot’s going to be busy this weekend given the current filter settings. But at least the (completely clean) comments are going through to moderation now instead of being pushed completely into the ether (along with Peter Hartcher’s columns). Which is a start.

  5. WHY are the electoral rolls with the names and addresses of millions of Australians given to private companies who run “massive digital marketing operations” ????

    https://www.theage.com.au/politics/federal/majority-of-companies-with-access-to-electoral-roll-are-global-marketing-firms-20190124-p50tcz.html

    Has Australia gone COMPLETELY mad?

    Why aren’t people consulted?

    I repeat, I REPEAT!!

    :::: HAS ::: AUSTRALIA ::: GONE ::: COMPLETELY ::: FN ::: MAD ???

    Why aren’t Australians emailing, calling, bangging down the doors to their Federal MP’s?

    Why aren’t people marching on Parliament House right now???

    What the hell is wrong with people?????

    • Because the law requires it. Under KYC regulations, financial and other institutions have to verify people’s identity, date of birth, and ADDRESS. Access to the electoral roll is provided to the likes of Equifax (previously Veda) and Dun & Bradstreet so that companies can do this electronically. So every time a customer application is processed, or a credit check performed, this is one of the databases used to provide KYC compliance.
      As for Afterpay, first they screamed blue murder that APT wasnt veryifying people’s identity, now they are complaining that they are. How stupid.

      • As a posty about 20 years ago we used the electoral roll as a backstop for identifying poorly addressed mail. Then they took them away and said it was a breach of privacy. Rules for some and rules for others.

      • kiwikarynMEMBER

        The Electoral Roll is actually a publicly available register and anyone can go look it up, either at an AEC office or a library. I dont think the credit check companies have a copy of it but they have the ability to query it. Same as the drivers licence database, passports, and births, deaths and marriages.

    • A friend bought in Geelong about two months ago. He’d been looking for a few months. At the beginning everything that ticked his boxes was being snapped up. When he bought he was able to knock a thousand off the asking price. It’s his second as was bought with equity from the the first and money saved in the overdraft. The first was bought two or three years ago in northern Melbourne. I worry about him, but he and his partner seem to be in a strong relationship, have stable jobs and seem like the type that will grind it out thinking about 20 years ahead, not five.

  6. SMSF property owners urged to have contingency plan as more of them sell
    https://www.afr.com/personal-finance/superannuation-and-smsfs/smsf-property-owners-urged-to-have-contingency-plan-20190123-h1aehp
    [By Duncan Hughes
    More self-managed superannuation fund (SMSF) members invested in residential property are selling thanks to rising loan costs, increased vacancy rates and tighter super regulations.

    So say lawyers and accountants, who highlight the importance of having contingency plans in place when properties are bought by SMSFs using non-recourse loans.

    Charis Liew, principal of superannuation services at chartered accountant and financial adviser William Buck, says an increasing number of SMSF property borrowers are considering their exit options.

    Josh Mennan, a principal of the superannuation and insurance practice for legal firm Maurice Blackburn, says: “This is a sleeping giant that is starting to wake up.”

    Total SMSF property debt is estimated to be about $39 billion, according to the Australian Taxation Office. Many of these loans were taken out at the peak of the property boom.

    In addition, many lenders required trustees to sign agreements that loans were to be “guaranteed” by giving them access to other assets of the trustees outside of superannuation.]

    • Seriously ? Quote;….

      “So say lawyers and accountants, who highlight the importance of having contingency plans in place when properties are bought by SMSFs using non-recourse loans.”

      The very same lawyers and accountants who were selling this structure to the SMSF crowd with massive kick backs….the scum!!

      LSWCP is correct and they deserve to get burnt.

      Problem is that these same greedy idiots may now qualify for the pension and their children will inherit zero.

      Maybe the SMSF trustees ( parents ) should sell their property to their children at a huge loss and at the same time we solve the problem of affordability for Gen Y and millennials.