Macro Afternoon

Stocks in Asia are again under pressure following the poor lead from Wall Street, but also from a slump in trade figures in Japan, sending Japanese stocks falling as Yen gained against USD. The Aussie dollar has lifted inexorably after a poor unemployment print, dragging the Kiwi along for the ride.

The Shanghai Composite gapped lower and has remained low throughout the session, currently down nearly 1% going into the close at 2904 points while the Hang Seng Index is also off, closing 0.6% lower to 28410 points. This puts it lower than the previous set of highs at 28500 as pressure mounts with a series of lower lows:

Japanese share markets are again the worst off as the latest trade numbers saw confidence disappear with Yen shooting higher on the safe haven bid. The Nikkei 225 slumped as a result, closing 2% lower to 21046 points, wiping out all of the July gains. The USDJPY pair has flopped straight below the 108 handle and has made a new weekly low, almost matching the monthly low at the 107.50 level:

The ASX200 was the relative best in the region, falling only 0.3% to close at 6649 points. The Australian dollar lifted strangely on the unemployment print, hitting the start of week highs at 70.30 or so and may gain traction on the City open only because its going up!

S&P and Eurostoxx futures are down at least 0.7% with the S&P500 four hourly chart showing the recent retracement may gain pace and get back down to the previous low at 2960 points if this disappointing earnings season carries on:

The economic calendar continues with some Treasury auctions plus weekly initial jobless claims.

Comments

    • LOL. The ad below the article……..
      Property News: Where you can still buy a beach holiday unit for $300,000 – domain.com.au

      No fvcking shame whatsoever. Those displaced retail workers will be laughing all the way to the bank if they buy a few of those in the months leading up to their redundancy. Can’t go wrong.

  1. Mr RobertsMEMBER

    Was working on a few different vehicles today and had to reflect on last nights discussion re german vs japanese engineering. I am a big fan of japanese vehicles and would definitely choose one over any other as a daily driver. With that being said, I’m a bit of a TQM geek, and I can actually see how it influences thee auto industry in a physical, hands on way. My favourite drive was my 65 Chev Belair- pre TQM and fuel crisis, total pleasure to drive and work on. The scientific management process see…https://en.wikipedia.org/wiki/Therblig was awesome for producing, but not picking up defects. Along came TQM- americans didn’t want it, japanese embraced it. Game over.https://en.wikipedia.org/wiki/Total_quality_management

    One of the vehicles I was working on was a japanese/french collaboration; french were meant to do the styling. Must have got involved with the engineering a little too much. With good mechanics charging $100 hr min, having a dodgy car can put a serious dent on peoples cashflow… It’s not only flammable apartments that have sacrificed quality over the last 10 years.

    • I would buy American made cars from the 50’s/60’s and possibly earlier. But by the 70s it was all over.. and the 80s forget about it.

      Really would love a 65 Chevy Corvair (unsafe at any speed) for it’s flat 6 air cooled motor.

      I still reckon this Top Gear segment is hilarious…
      https://www.youtube.com/watch?v=cmWWixyuRmw
      Alfa Romeo Mechanicals and Japanese Styling 😛 Got it arse about.

    • innocent bystander

      mate & I used to have some of the early Alfas – we always said you needed a 2nd car as a backup. Italians always had issues. Looked great standing still tho.

      • Just buy a Bentley and don’t worry about it. With all the sound advice on this blog , be surprised who else isn’t driving one…

    • Relevant StakeholderMEMBER

      So the oldest political party on Earth is the ‘new’ right?

      Still confused Skip….

      What do you think of Tucker Carlson promoting Elizabeth Warren?

      • Don’t know where you get your poli sci, but your comment is a wee bit light, not to mention unfounded.

      • not surprising. Murdoch press supported Whitlam in 72, Hawke in 83 and Rudd in 07. Still claims Hawke was the best leader we’ve had.
        Murdoch is all for individual identityism anti politics small l liberal nothingism. But the minute any genuine leftist policy gets mooted eg. Rex Connor’s mining agenda, bang, Murdoch destroys them.

        Which goes to show the one untouchable for neoliberals is the “free market” agenda. Have some fun with the other distractions. Sell a few newsapers with culture wars and pointless debates about the republic, and individual rights blah blah blah, but you can’t mention economic justice. that’s why I don’t buy the line that neoliberals are conservatives. They aren’t they are radicals who want to upend all traditions.

      • Relevant StakeholderMEMBER

        You posted an article equating the ‘new’ right with neoconservative boomerism. It wasn’t worth much of a response.

        There are frauds on both sides skip.

      • It doesn’t tie back to historical observation Skippy.
        The neoliberals come from the small shopkeeper class – Thatcher, Keating, Howard. Totally different set of values to the old guard conservatives who would laugh at the idea that the free market is the best way to hold things together rather than club, class, tradition etc.

      • I think the two protesters need to view the embedded links and expand from there. Trying to make out the post of itself does not satisfy your complaints is milquetoast at best. Not to mention the comments.

    • The Traveling Wilbur

      Aaaaaaaaaaaaaaaagh. I was happy about this before I read that. Jeez humans are just fcknd up stupid psychopaths. Narcissistic fcknd up stupid psychopaths.

    • So it uses an example of some one claiming to “”rake in millions”” (so easy work) and then asks how the changes will affect people making their “”livelihood”” from instagram as if she deserves any sympathy. Oh the millions! As Ted Bullpitt would have said: “”get a haircut and get a real job””