Macro Afternoon

The bounce continues here in Asia with stocks up across the board while currency markets are steady as the USD firms. The trifecta of Chinese internal economic releases came in lower than expected but this was overshadowed by the PBOC cutting the Yuan fix again to its lowest point since January, as the trade war of words settles down. Until tonight at least!

The Shanghai Composite has bounced the strongest, lifting over 2% higher to close back above 2900 points again, currently at 2943 points. In Hong Kong, the Hang Seng Index has continued it owns little relief rally to be up just over 1% to 28433 points. Momentum was clearly way oversold and is coming back to a swing play but there’s a lot of daylight overhead to fill:

US and Eurostoxx futures are lifting on the back of the Asian rally with both up around 0.3% with the four hourly S&P500 chart showing an inclination to swing higher, but trailing resistance at 2890 points maybe too far a hurdle:

Japanese share markets came back fairly strongly as Yen didn’t provide as much as a headwind, with the Nikkei 225 closing 0.5% higher at 21188 points. The USDJPY pair has remained steady at the 109.70 level for over a day now and is poised to clear higher:

Australian stocks have done well, not quite catching up yesterday’s losses but close with the ASX200 lifting 0.7% to be at 6284 points. The Australian dollar has helped due to its own depressive mood, falling again to another new low and threatening the 69 cent handle:

The economic calendar has several major releases tonight, first off being German GDP then the EZ wide print for the first quarter. Next its US advanced retail sales for April and the latest DOE oil inventory report.

Comments

  1. In breaking news… the quintessential boomer Kerri Ann Kennerley has thrown her considerable weight behind Macro Business” preferred candidate Scott “Property Council” Morrison.

    • proofreadersMEMBER

      Bad hair day for KAK with her rant about Labor? Also, sounds like the NP may also have declared “an end to life as we know it” for the Coalition until Monday at least, over the Molan saga?

      • C.M.BurnsMEMBER

        So pensioners are leechers but receiving a tax return against dividends that you didn’t pay any tax on is ? Lifting I assume.

        I suppose we should be thankful. It’s been a while since a baby boomer reminded everyone what ravenous parasites (nearly all) of that generation are.

      • A bit rich coming from someone who’s mastered the art of self importance. Most of those pensioners would have achieved more getting out of bed in the morning than anything KAK could ever hope to achieve.

    • SweeperMEMBER

      She is a great modern day Australian journalist.
      Really has her head around the policies, where they sit in the budget, the distribution of economic welfare.
      A great mind. A great *journalist*.

      • ChristopherJMEMBER

        You could see sky. Interesting that the young man with the blonde good looking nurse, goes to work and works on red engines. Has to be Holden. Found the Life in Cairns one, from 56 or so. Pleased the public servants are finally sharing these windows into the past we once had

      • GunnamattaMEMBER

        When people think of the decline in manufacturing gigs and to see their prominence in these docos is to get a sense of a completely different world (and the the smoking, etc)

      • matthew hoodMEMBER

        Hey Gunna, my sister is down your way and is looking to downsize. The family home is just to big to manage and she would like to be in Geelong ( Lara is home ). Where should she steer away from and is there anything good in Geelong itself ( she would like to be near the water ).

    • Back then, those houses (Melbourne and Sydney) provided and had enormous real worth and value to people, families and society and the price was low.

      Today, those same houses provide and have little to no real worth or value at all to people or society and the price is high.

  2. https://forums.whirlpool.net.au/archive/92zrpyp9#r59042367

    Thought this discussion was quite funny. Dream Design Property, a company run by another of those wannabe retire early/start a buyers agency types appears to be in damage control trying to stem the bleeding with multiple fake accounts.

    From his own website, Mr Ameer “is renowned for going from nothing to owning 15 properties in 3 years, and now helping others do the same thing without the unnecessary risks many investors take. In only 3 years Zaki owned $4,500,000 worth of property with equity of $1 million.”

    I wonder if this is the future for Mr IQ types…

  3. I voted early as usual. The polling booth was slated to shut at 6 pm today, but the AEC staff were still processing people after 6:20 pm (that is when I got out of there).

    I got to the booth at 5:20 pm. So it took one hour!

    Psychopathy to be replaced by psychopathy lite on 18 May.

  4. Hugh PavletichMEMBER

    … CHINA …

    Hong Kong sounds the alarm on Chinese capital flight … Ambrose Evans – Pritchard … UK Telegraph (behind paywall)

    https://www.telegraph.co.uk/business/2019/05/14/hong-kong-sounds-alarm-chinese-capital-flight/
    .
    .
    Earlier China related MB post …

    https://www.macrobusiness.com.au/2019/05/links-15-may-2019/#comment-3347409

    China’s empty homes may prove a bigger threat than Donald Trump’s tariffs … Michael Janda … ABC News (Australian Broadcasting Corporation)

  5. Not infuriating atall:
    kadhim (^ー^)ノ @kadhimshubber
    The Bank of England apparently still subscribes to the notion that banks are ‘too big to jail’, despite case after case where criminal indictments and guilty pleas have had zero effect on financial stability.
    Bank of England warned criminal charge could destabilise Barclays
    Top regulator said criminal action over Qatar payments presented risk to bank’s safety.
    https://twitter.com/kadhimshubber/status/1128591438495797248

  6. Clancy Overell and Errol Parker both deserve the Order of Australia for being the last tethers to sanity in Australian media. (No offence MB. Your just too niche. And I’m sure LVO and HnH both duck across for a peek and a giggle.)

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