Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Not quite a bath of blood, but its been a red day across Asian stock markets in the delayed weekend response to the tremendous selloff on Wall Street on Friday night.   Chinese stocks are leading the way down this time with the Shanghai Composite closing 1.2% lower to 2863 points while the Hang Seng Index is off even more, down more than 2% to 25530 points. Price has gapped down well below the low moving average on the daily chart, and look set to return to the terminal low just below 25000 points:

Japanese share markets are following the poor lead with the Nikkei 225 closing over 2% lower to 20261 points, not helped at all by a very volatile Yen, with the USDJPY pair gapping down on the open and then surge nearly 100 pips higher before returning to hover just above the 105 handle going into the City open. A fun day for day traders but no one else:

The ASX200 didn’t fall as much as expected, clawing back a poor open to close only 1.3% lower at 6440 points, but its a worrisome break down. The Australian dollar is sending even worse signals, falling sharply below the 67 handle to almost a monthly low, matching but not breaking below the recent terminal low:

S&P and Eurostoxx futures are off by more than 2% and 1.4% respectively, so the pain isn’t over yet. The S&P500 four hourly chart clearly  showing price wanting to breach the former lows at the 2830 points level, having now rejected significant resistance at the 2940 level:

The economic calendar starts the week with a very solid print to watch – let alone the G7 summit – and that’s the US durable goods orders for July.


  1. Complex Carbon Unit

    The AU dollar, quick I better get the bits I need for the 440 ci magnum engine in my 68 Dodge Charger !
    I can remember when the AU was 48 cents to the US dollar ! And it stayed their for a while !

  2. Because too much cricket is never enough… SL are attempting to bat out the 5th day against NZ. SL are 6 down and need 115 more to make NZ bat again.

  3. … CHINA …

    Tide Goes Out for China’s Skinny-Dipping Banks … Bloomberg / The Washington Post

    You only learn who’s been swimming naked when the tide goes out, as Warren Buffett observed in 2008. This earnings season, we’ll get to see who’s been skinny-dipping in China.

    Banks and asset managers in the world’s second-largest economy are notoriously slow to acknowledge investments that have gone bad. But if they have a stock listing in Hong Kong, they’ll be forced to recognize losses earlier in the credit cycle under a change in accounting rules that took effect last year. …read more via hyperlink above

  4. The Traveling Wilbur

    So, The Ashes rolls on as a live rubber. You’se must all be Stoked about that. (heh)

    • It’s a Starc reminder that if you’re trying to Wade into this argument, we’ll put a Border around it.

      • China PlateMEMBER

        What a paine in the rear you guys are or am I mixed up with the dog day afternoon story above
        But I ain’t clicking on it

      • The Traveling Wilbur

        Not goin to warne you about this again – if you keep lyon like this, well, you don’t carey I know, but next time maybe just the broad strokes – don’t do anything rashid – would be my advice. Probably more up your ali anyway.

      • Kahn on, we’re stuck in a Marsh and it’s blowing a Gayle. There’s no Ponting the finger about who started this Waugh, I’m Afridi this might get out of Handscome, stop acting like a brazen Hussey.

      • The Traveling Wilbur

        or the satisfaction one gets from a couple of good linseed applications in the right spots.

        Works wonders for bats too.

    • The Traveling Wilbur

      Was that: thank you for all the money and yes most of my bosses were are as thick as a printed copy of the electoral role for Newcastle?

    • Comparing the challenges of former governments to those faced today, Dr Parkinson said the reforms of the Hawke-Keating and Howard-Costello governments “managed to turn around the incoherence and populism of protectionism so that today most Australians see the benefits of openness” and that former treasurers Paul Keating and Peter Costello “made it look easy”.

      “Looking back it now feels that to do reforms in the 1980s and 1990s, all we needed was to open the economic textbook to the right page and leaven it with some political realism,” Dr Parkinson said. “Today there is no such consensus on what reform looks like. Some of the economics we now need is not even in the textbooks.”

      What a load of twaddle. Keating/Howard set us on this path by opening up the neolib textbook and screwing our country to the gods of globalism. Now that we have sold everything, offshored manufacturing, privatised everything, let the banks run amok, tried to paper it all over with immigration and ever rising house prices, suddenly these fvcking retards have run out of ideas! Gee, they never thought that selling your country out would come to an end? Fvcking dispicable cvnts the lot of them.

      • +1 I can almost tolerate them being a pack of bastards, but to turn around and say I didn’t know what I was doing as you depart? That’s even worse..

  5. We all knew Mr IQ had a problem, now confirmed.

    Buying too much stuff for your home? You might have this psychiatric disorder

    People with this problem have maladaptive impulses, behaviours, beliefs and preoccupation around shopping and buying, he explains. “Not only do they buy stuff they don’t need, but it leads to debt and financial problems, legal difficulties and relationship conflicts. It also leads to overconsumption.” At the extreme end of the disorder, he’s known people who’ve purchased multiple homes. “Anything that’s consumable is on,” he says.