Macro Afternoon

Quite a mixed session across Asia today with Chinese stocks slumping, Australian advancing while the long weekend dampener has seen Japanese bourses remain steady, despite a weaker Yen. Oil prices haven’t moved much since their weekend gap, but this could be the calm before the storm as OPEC is due to hold a press conference soon, with the expected supply crunch likely to see increased volatility tonight.

What a shame Australia doesn’t have much in the way of a strategic oil reserve – she’ll be right and all that hey?

The Shanghai Composite slumped to finish nearly 2% lower at 2979 points, breaking below the 3000 point barrier that had been building as support while the Hang Seng Index followed in suit, closing 1.5% lower at 26726 points, also breaking below weak support/former resistance at 27000 points:

Japanese share markets reopened from their long weekend in a holding pattern with the Nikkei 225 closing right on 22000 points while the USDJPY pair advanced slightly above the 108 handle, and looks set to breakout to make a new weekly high soon:

The ASX200 continued to make some gains in as iron ore advanced and the Australian dollar dropped on the back of the RBA minutes, climbing some 0.3% to finish at 6695 points. The Australian dollar finally moved – down – as the RBA easing bias is now crystal clear, sending the Pacific Peso off to a new weekly low, taking back all of last week’s gains and ready to break below tentative support:

S&P and Eurostoxx futures are down only slightly as European markets open with the S&P500 four hourly chart showing a steady, if weak resolve just below the 3000 point barrier, as traders continue to weigh up the outcome of the Saudi oil attacks:

The economic calendar includes the closely watched German ZEW survey tonight, plus US industrial production for August.

Comments

  1. The Traveling Wilbur

    Apologies to Peter.

    Lower rates and pile on more debt
    Lower rates and pile on more debt
    You can get, you can get
    Put it on a house
    It’s your bet

    Build it up and watch it go
    Build it up and watch it go
    Got dem rates, so damn low

    I got pennys in heaven
    And no interest in my bank
    I ain’t giving them my money
    ‘Til rates start with a seven

    I got anna on my pillow
    An’ I got phil on my wall
    Ain’t borrowing nothin’
    ‘Til money’s free for all

    Lower rates and pile on more debt
    Lower rates and pile on more debt
    You can get, you can get
    Put it on a house
    It’s your bet

    Break it down
    Bring it on down
    Rates
    Give it to my home, boy.
    Props.
    Da Rhyme Busters Australia are in da house!
    Raising da roof!
    Making you’se richer!

    Not gunna draw you a pitcha.

    *chorus* with fade-out

  2. Geez. What are you guys doing with all of the ads on this site? I read this on a mobile mostly and ads pop up everywhere. The in-line ads are so big and slow they disrupt the page rendering and those animated popups that appear on the bottom obscuring the content are annoying and can only be killed if you can hit the tiny x. I reckon its the ad overload that is making your site run so slow.

  3. 11 hours ago

    Good article exposes the backflip of the Democrats on immigration:

    “Folks, I voted for a fence,” Biden said in 2006. “I voted, and unlike most Democrats — some of you won’t like this, but I voted for 700 miles.”

    Now they are into open borders.

  4. Been looking around for a house to buy in Perth northern suburbs, seems like there is still no realisation that prices have been decreasing over last 5+ years. And a lot of properties are on the market for “best offer” or “set date sale”. Mind boggles.

    Anyone else seen the same?

    • Yeah, just bought a place down in Kardinya. I reckon I’ve saved close to about 100k by holding off until now, but hard to exactly obviously. I’ve only seen significant reductions over the last 6 to 12 months though, and only bought because the right place came up. Would’ve been happy to wait otherwise.

      • Interesting to hear that, I think around the same for where I’m looking at putting an offer on this week (Beaconsfield WA). Don’t think it’s a great time to buy but the perfect place came up and at an affordable price, so we’re going for it. Don’t really care as will live there for 20 years. Will likely lose value in an upcoming recession, but that’s ok.

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