Macro Afternoon

With the inversion of risk sentiment overnight following the latest Federal Reserve meeting, Asian markets were not expected to be boisterious today, not helped by the continued Golden Week holiday in Japan and with mainland Chinese markets also closed. Locally, the NAB profit release and cut in dividends sent the financial index and thus the whole ASX200 down, despite a lower Australian dollar from overnight.

The Shanghai Composite was closed while the Hong Kong based Hang Seng Index finished 0.6% higher to 29890 points, bouncing off local support at the 29000 point level so there’s still more upside potential here:

US and Eurostoxx futures are up slightly, bouncing back from last night’s falls with the four hourly chart of the S&P 500 wanting to get back to it previous record high levels, or at least the September 2018 level at 2940 points, and with the 3000 point level the next obvious target:

Trading in the USDJPY pair is still dependent on low volumes with a bottom being found at the 111 handle today after making a new weekly low, with a small swing higher up to the high moving average on the four hourly chart unlikely to translate into further gains:

Australian stocks fell at the open in response to the Wall Street selloff with the NAB print not helping matters as the ASX200 finished 0.6% lower to 6338 points. The Australian dollar remains depressed following the overnight rout due to the FOMC meeting, almost back to last week’s lows at the 70 handle:

The economic calendar continues tonight with a big economic event – the BOE meeting for May. There’s also weekly initial jobless numbers in the US plus the latest factory orders.

Comments

  1. The Traveling Wilbur

    Cut the dividend? Cut? Cut!!!

    But that only happens to people when they buy and are too poor to afford a real stock! Won’t someone think of all the elderly rent-seekers? Unaustralian.

    • The Australian thing to do would be to cut teh rates. The bank can maintain it’s profits rather than passing it on to borrowers, and the bank’s share price goes even higher so that the dividend yield matches the even lower interest rates.

      • Someone needs to think of all the poor multi-millionaire retirees with over a million dollars’ worth of bank shares. These guys have planned on forever rising dividends + imputation credits + forever rising share prices. It is unreasonable to change the rules. They might have to cancel their annual world trip.

    • Mining BoganMEMBER

      That’s it? Congestion? No reason but congestion?

      That’s not a positive sign.

      • Lol. Yep. Just put one major bingle with injuries on this and people aren’t getting home till 9. Ridiculous.

  2. 83 year old grandmas being given Aussie citizenship?

    5 hours ago

    61st wedding anniversary

    recently becoming Australian citizens.

    https://www.smh.com.au/national/nsw/pedestrian-killed-in-cement-truck-crash-in-sydney-s-north-20190502-p51jde.html

    I think the Briton on $103k/year would probably not have imported his mum – ever. But hey, instead of importing Britons on $103k/year, import unskilled couples on $10/hour wages and then hear them insist that their old parents should be allowed to live here!

    When we got immigrants from Italy, their parents never moved to Australia with them.

    • zentaoMEMBER

      “When we got immigrants from Italy, their parents never moved to Australia with them.” yes we did. But don’t let it spoil your story

      • After becoming grandparents?

        I met a young Greek/Aussie guy a few years ago. Does he live with his father? No.

        Does Tom Elliott live with his father? Does Eddie Mcguire live with his parent?

        Italian fathers sent their poor sons to AUS in the 1960s and the sons got married and had kids and visited Italy in the 1980s. The grandpas did not move to AUS. The grandpas died in Italy.

        Tony Tardio’s father was born on 2 Feb 1917 and came to AUS in 1949. Tony was born in about 1960. Did Tony’s grandpa ever move to AUS?

  3. Watching houses in my area get flipped with a lot of frequency in the last couple of years.
    https://www.realestate.com.au/sold/property-house-nsw-five+dock-125047470
    $1,615,000
    Sold on 11 Apr 2017

    Got a leaflet in the mail today to tell me it’s up for grabs again…but it’s not on any of the Interweb listings yet, maybe it’s 1 of those “off market” opportunities? Last I saw it was being rented, so an “infestor” is likely cutting loose and running.

    • GramusMEMBER

      11 April 2017 was pretty much the top of the market.
      An interesting one to watch,

    • Gavin, if you mum purchased a house in 1996, she purchased it when houses were fairly priced!

      She sold in Sep 2017, when prices peaked, so her timing was impeccable!

  4. Gavin I live near here too I am interested see how it goes? If it’s an auction I think it will end up withdrawn.
    I am a car fan , got my V8 to look after but if you don’t like Fords than ignore me.

    • I like all cars mate, guy around the corner has a mean Valiant. I’m into my J-tin stuff (Japanese cars). Recently bought a Nissan Stagea 260RS and love it (R33 GTR drivetrain, but with a station wagon body). If you see 1 around that’s me! 😀

    • and the greybeard has been bastard who stalks ford v8 aficionados with extreme prejudice in his skeleton should walk by also? ….how ’bout dem 2.19″ intake valves in the 4V head eh? standard from factory