Macro Afternoon

Asian share markets were given a boost this morning with some progress on the US/China trade talks, building on the positive mood on Wall Street on Friday night, with the Chinese Yuan firming to new six month highs against USD.

The Shanghai Composite is up more than 4% going into the close, soaring above 2900 points as traders double down on the good news. The Hong Kong Hang Seng Index however is less sanguine, barely treading water and closing at 28837 points. The current rally remains intact , with no new close below the high moving average or the trendline on the daily chart:

US and Eurostoxx futures have advanced from their Friday night highs with the S&P 500 poised to break the psychologically important  2800 point level later tonight:

Japanese stock markets advanced despite a stronger Yen, with the Nikkei 225 lifting nearly 0.4% higher to 21529 points, remaining well above key resistance that had been broken recently. The USDJPY pair tried to break above trailing ATR resistance at the 111 handle but was hit hard as USD weakness bit on the China trade talk news, now hovering at the Friday session lows at 110.60 or so, with momentum indicating a breakdown is imminent:

The ASX200 has had another solid start to the trading week, rising just over 0.3% to close at 6186 points, maintaining itself well above the key 6100 point resistance level and setting up for further gains above 6200. The Australian dollar pipped higher on the China news but has been unable to follow through later in the session, stalling at the longer term downtrend line at the mid 71 handle:

The economic calendar starts the week with the usual Brexit shenanigans to sort out from over the weekend, including a speech by BOE Governor Mark Carney later tonight, then we get US wholesale inventories.

Comments

  1. ErmingtonPlumbingMEMBER

    An insinkerator install (a ridiculous product) along with a Zip Hydro tap unit with with boiled, chilled and carbonated water unit measuring 460 x 330 x 330 including a stupid 4 and half inch CO2 cylinder with 14,000 kpa in it!
    All Installed under a double bowl sink in a 750 wide cupboard space with the drainage and water points coming up through the middle!

    Aaaarrrrhhhhh!

    • 14000kpa. Jesus. Used to work at the gas company in Adelaide and the transmission lines were 1500kpa and that was bloody scary pressure. 14K is nuts for a consumer item.

    • DAVID Beckham goes shopping, and sees something interesting in the
      kitchen department of a large department store.
      “What’s that?” he asks. “A Thermos flask,” replies the assistant.
      “What does it do?” asks Becks. The assistant tells him it keeps hot
      things hot and cold things cold. Really impressed, Beckham buys one and
      takes it
      along to his next training session.
      “Here, boys, look at this,” Beckham says proudly. “It’s a Thermos
      flask.”
      The lads are impressed.
      “What does it do?” they ask.
      “It keeps hot things hot and cold things cold,”says David.
      “And what have you got in it?” asks Roy Keane.
      “Two cups of coffee and a choc ice,” replies David.

    • ChristopherJMEMBER

      Should be a banned item, Ermo. Just encourages people to be wasteful. Told last Indian family to get a dog.

      • As a conscientious dog owner with several fur babies, there’s almost nothing that we eat that I’d consider giving to our dogs.

        But I understand the sentiment. Lived in an apartment for years that had one. Was a novelty at first but over time just became a liability as it kept breaking and/or causing plumbing blockages. Will never put one into our place. Just scrape it into the bin FFS.

      • Yes. But primitive human diets would have been entirely natural foods, including prey that they hunted.

        Consider the typical western household diet now, even one that eats healthy; vs all those things that are harmful to dogs (sugar, salt, various preservatives, saturated fats etc). It’s not comparable.

        Further, we still bond through feeding them, just with actual proper dog food. Plus bonding through walks, play and grooming.

      • I feed my dog raw vegetables, meat, eggs and fish. That’s about it. He eats better than most humans lol..

    • In a house that’s nuts but on a floor at work with ~100 people sharing it is an awesome perk and saves lots of time. Instant teas and we churn through those canisters pretty regularly on the sparking water too.

  2. matthew hoodMEMBER

    New estate in my regional city has sold about 50% of the blocks but are now offering a “landscape package ” which they value at $10000. First time this has been offered by developers on vacant blocks in this area . Maybe it really is only 18 months away😊

    • Boomer couple in Melbourne ‘arent gonna give it away’
      Woggy man in sydneyistan trying to offload ip and can’t even be bothered to turn his cap around the front way just like lil bart simpson

  3. No wonder the US and China are both stimulating their economies and are getting ready to cobble together a sufficiently attractive trade deal to keep markets up.

    US gasoline sales

    https://www.advisorperspectives.com/dshort/updates/2019/02/22/gasoline-volume-sales-and-our-changing-culture

    US existing home sales

    https://www.advisorperspectives.com/dshort/updates/2019/02/21/existing-home-sales-down-for-third-consecutive-month

    Both of these charts show quite a bit of symmetry and look like they are under the influence of the same forces

  4. The ABC should put warnings before segments featuring entitled old greedsters. Had just finished dinner when some very wealthy boomers told about their struggle to sell their mansion on the 7.30 report. Before I knew it, the old codger said it. ‘ I don’t want to give it away” . I nearly vomited.