Macro Afternoon

The risk on mood in Asia continues with very solid rises in Japan and China, with local markets drifting only a little higher as currency and commodity pressure weighs.  The ECB QE outcome from last night is still rippling through currency markets with the Euro ready to surge higher again tonight.

The Shanghai Composite is closed for a holiday while the Hang Seng Index is up 0.5% to 27226 points, making good on its breakout above former overhead resistance at 27000 points:

Japanese share markets continue to fly higher and higher with the Nikkei 225 surging yet another 1%  higher to 21988 points making another weekly high – but its too much too fast! The USDJPY pair is struggling to breakout above the 108 handle with a slight retracement this afternoon before the City opens:

The ASX200 is slowly making some headway, making another 0.2% in gains to finish the week well above 6600 points, as the  Australian dollar remains relatively depressed following last night’s false breakout, currently just below the 69 handle again:

S&P and Eurostoxx futures are fairly flat at the moment, but a cursory glance at the S&P500 four hourly chart shows momentum building and wanting to breakout above the previous highs (solid black horizontal line) so watch out tonight:

The economic calendar finishes the week with US advanced retail sales for August. Have a good weekend!

Comments

  1. 1 for the bears, warehouse conversion I looked at 2 years ago. 1 mechanic workshop converted into 2 apartments.
    1. Townhouse A sold for $1.25M after listing at $1.3M+
    2. Townhouse B has been on the market since 2017.. originally asking $1.3M..

    (For some reason on Real Estate I cannot star it to keep track, I’ve seen this with some properties).

    Anyway checked today dropped in price now asking $950-$1.05M..

    Good area (Eastern Suburbs of Melbourne). Personally I think it’s true value is closer to $600k, but what do I know?

    In this market I’d consider it at $800k maybe $850k but it’s only 2 bedrooms, maybe space for 2 cars in the garage (small sports cars only) and 1 in the driveway. Small yard. Not sure on strata arrangement with it.

    Definitely a 2 speed market..

    • Gav, prices will jump another 5% or there abouts on top of the 2% or there abouts. Banks are lending almost like it is early 2017 or 2016. We need to hit our borrowing limit and then thing breaks. At this rate prices will hit the upper limit by Christmas and by then RBA would have already cut one more time. Rest of the cuts will be spent between Jan and June. Christmas 2020 will end in tears – for the savers that is.

      • Way too slow fckn.

        Need collapse by Christmas. This Christmas! Come on Trumpy. Come on Deutsche Bank. Come on whichever apartment tower is going to fall into Botany Bay. Move it!

      • Shifty Politician

        Bullsh1t – complete and utter rubbish.

        Market is stuffed – the minuscule rise in prices is off a 15% collapse with the lowest volumes since records began for the collection agencies.

        The only people calling a “boom” are vested interests – this website included with its Buy Now absurdity.

        Every single credible resource is telling it how it is – its bad, there is no recovery and things are about to get vastly worse.

      • SnappedUpSavvyMEMBER

        Nikola is right about the banks lending like its 2016, my bank wanker contacted me and could hardly contain herself with offers of debt, lots and lots of debt, 3.5% without pushing debt

        • I’m not so sure. My step brother is living in a granny flat behind his mum’s house. He works full time, but his wife doesn’t (1 of those hypochondriac types), anyway he doesn’t have a deposit but my step dad is gonna help with that.

          Recently tried to buy in Tasmania (living in Ringwood Vic atm.), The house is $170k ish.. just outside Launceston (maybe 50km from it). All was looking ok, but bank has now declined it.

          I don’t know what sort of debt he does and doesn’t have, but surely anyone with the ability to fog up a mirror can borrow $170k at today’s interest rates?

        • I was transferring the house savings money between ‘bonus interest’ accounts recently, which all came through my core CommBank account. The day after the money hit the commbank account, one of the local branches called me on 3 consecutive days asking “if I needed anything”. Then offered me a 1.65% interest rate on savings. Smiled and said no, i can get better elsewhere.

    • Dead right. I’m a paid-up member of SAP and while I believe the Party’s heart is in the right place, they must pick up the ball when it comes to immigration and run with it. HARD!!! (apologies to Tom Gleeson)

      • Only the members want immigration reduced now, the party leadership is clueless and don’t have what it takes to push the issue.

  2. Warner and Harris have definitely shown enough to be the openers this summer.

    14 on the board and Mitch Marsh is next in!

    • Hmmm of all the choices, this was the most benign. He could’ve showed up in a gimp mask, with nipple clamps and attached to a leash, whipped at the naked end of a pair of assess chaps by a strap-on wielding dominatrix.

  3. … AUSTRALIA …

    Australia’s new ‘class system’ : Why PROPERTY is more important than salary in 2019 – and you’re not ‘rich’ if you earn $150,000-a-year … DAILY MAIL

    https://www.dailymail.co.uk/news/article-7458629/why-earning-150-000-year-no-longer-makes-rich.html

    • University of Sydney professors said property not wages determined wealth

    • Lisa Adkins, Melinda Cooper and Martijn Konings had investors as the richest

    • Home owners with mortgage put in the middle with renters, homeless at bottom

    • Having rich parents was seen as big factor in whether someone was wealthy … read more via hyperlink above …

  4. True talk people,

    What are everyones thoughts about the new Land Rover Defender? They’re ugly in some photos, but I think in the flesh they’ll look great. There’s still a lot of unknowns about stats, economy and actual price here down under. Definitely an interesting car to consider, although the proposed landcruiser 300 series with a v6 hybrid might step it up again when it has new technology in it, compared to the 200 seeries.