Macro Afternoon

Share markets in Asia are mixed today despite the green board across other risk markets overnight, as traders look for more clues and innuendo surrounding the trade war truce between the US and China coming out of the G20 on the weekend. In other words, don’t trust a word either side has said and verify…

The Shanghai Composite has retraced a little, falling about 0.2% to 3040 points, still well above the 3000 point barrier and holding on to yesterdays large bounceback. The Hang Seng Index reopened after its national holiday playing catchup and gapping over 1% higher to be just below the 29000 point level, making a new weekly and monthly high:

Japanese share markets put in mild rises as the Yen went nowhere in today’s session, with the Nikkei 225 closing only 0.1% higher but still looking firm here at 21754 points.  The USJDPY pair is effectively unchanged with a series of lower highs and higher lows pushing it to a breakout point just above the 108 handle that should move soon as it remains too overbought in the short term:

The ASX200 basically tread water today after starting well enough with a late selloff post the RBA meeting sending it to a scratch result, closing at 6653 points.  The Australian dollar bounced back a little bit this morning after last nights sharp selloff, but was unpertubed during the rate cut, moving in only a 30 pip range. It has been unable to get back above the 70 handle so tonight’s trade when the City opens will be quite telling:

S&P and Eurostoxx futures are only slightly up, around 0.2% or so reflecting the mixed mood here in Asia. The four hourly chart of the S&P500 chart remains positive after the previous breakout above the previous weekly highs at the 2970 point level but so far this hasn’t translated into a solid rally here:

The economic calendar is relatively quiet tonight with the latest German retail sales and UK construction PMIs to watch out for. Governor Lowe will be giving a speech tomorrow morning in Darwin that could be interesting post today’s meeting.

Comments

  1. … NEW ZEALAND …

    Business confidence at 10 year low … Stuff / KiwiBlog

    https://www.kiwiblog.co.nz/2019/07/business_confidence_at_10_year_low.html

    Hehir says more houses not more rules … Kiwiblog

    https://www.kiwiblog.co.nz/2019/07/hehir_says_more_houses_not_more_rules.html

    Barfoot & Thompson’s sales volumes have now been at nine year lows in three of the last four months … Interest Co NZ

    https://www.interest.co.nz/property/100499/barfoot-thompsons-sales-have-been-nine-year-lows-three-last-four-months

  2. HONG KONG PROTESTS …

    Donald Trump says he spoke ‘briefly’ about Hong Kong protests with Xi Jinping during G20 | South China Morning Post

    https://www.scmp.com/news/hong-kong/law-and-crime/article/3016853/us-calls-calm-following-hong-kong-protesters-break

    Hong Kong’s democracy movement was about hope. These protests are driven by desperation … CNN

    https://edition-m.cnn.com/2019/07/02/asia/hong-kong-protests-anger-intl/index.html?r=https%3A%2F%2Fwww.google.com%2F

    Google NZ News Search ‘Hong Kong Protests’

    https://www.google.com/search?q=hong+kong+protests&source=lnms&tbm=nws&sa=X&ved=0ahUKEwi45dzj15XjAhUWXSsKHcS1A-gQ_AUIESgC&biw=417&bih=373

  3. Mining BoganMEMBER

    So where does one cut one’s spending first to achieve maximum effect? Especially if one is lousy and doesn’t spend already.

    • I’ve a purchase idea.
      How’s about a t-shirt that says
      CAN’T SHOP
      RATE CUTS
      Get it out and about with all the savers
      Wear it everywhere.
      Browse ruthlessly and when a salesperson comes over just point to the shirt.
      On the back you could have,
      “Send all complaints to Philip Lowe
      e: [email protected]
      t: 1800300 288″

      • proofreadersMEMBER

        You are on a winner with that T-shirt idea. Where do I order mine? But you do need to add add one more thing:

        How good is Australia!!

        But you won’t be able to copyright that last thing, because …?

    • The Traveling Wilbur

      Soap.
      Toothpaste.
      Dental floss.
      Mouthwash.
      Deoderant.
      Underpants.
      Disposable razors.
      Nail scissors.
      Haircuts.

      • Having paid for all the items he hopped into this rental car and headed to the motel. The deal had gone down well. No one suspected that the rate cut was a fake, a fraud, a phony, a placebo, a bit of monetary shamanism to appease the ignorant and self important chiefs and calm those that suffered under what passed as the wisdom of their rule. He had the cash now it was time to split. But he needed to be sure that he was safe. Sure the rate cut had worked in the past. Now it was useless. It was pushing string. There would be a great wailing and a gnashing of teeth as it all fell apart quicker than the attempt at narrative in the comments section of an obscure economics blog about a third world iron ore republic. There will be a need for blood and he know that it would be his. He could no longer be a mining bogan. To survive and be above punishment he would need to become a spiv. It went against every fiber within yet self preservation conquered self respect. It was time to groom. He could handle that. He’d been to weddings before. He even did it once for a funeral of a person whose family he mildly admired. It was the words that he feared. Those nothings that dribbled out of the sh1t eating grins. The forceful handshakes of men whose only strength derives from the power of institutions that they cower behind. That’s what was going to hurt. If he makes it through that will be the part of the story that he won’t even tell to himself because he will have pushed it down so far, and with such force, that it will eventually turn into a black hole that tears the fabric of his being as it starts destroying his psyche. That was the future. Now he just had to survive. Now he just had to groom.

  4. I think I read somewhere that today marks the first day of the longest US economic expansion in history, then we get this from the RBA. Who know what’s going on at the top this is all by design

      • Yep. Closely related to the UBI. It is a job guarantee in action.

        Spanish public servant skipped work for a decade

        show up to the office every morning at 7:30am to clock in using the fingerprint scanner before heading home, only returning to the office at 3:30pm to clock out.

      • UBI payed to consume whilst doing nothing socially or otherwise proactive let alone learn anything which would foreword the aforementioned.

        JG just the opposite.

    • Jesus christ these cvnts have no fvcking shame. It’s going to take a few being popped off to get any modicum of understanding that being a pig swilling politician doesn’t give you carte blanch fvcking freedom to then go to the private sector and rape the public purse even further. Cvnts!

    • “This is a test of the Prime Minister’s integrity”. So said Penny Wong.
      Chortle, snuffle.
      Integrity is a stranger to all parties in our parliament. The whole parliament is bereft of integrity. It is the place integrity goes to die.
      You might as well rail against the weather.