Macro Afternoon

A generally positive day across Asian risk markets with a good response to the latest Federal Reserve cut, as the USD continued its gains against most of the majors. The Australian dollar tanked on the rise in unemployment which buoyed the local stock market, and this afternoon the BOJ held to its course, sending Yen slightly higher.

The Shanghai Composite was flat throughout the session until the close, jumping nearly 0.3% higher to almost back above the 3000 point barrier while the Hang Seng Index was the worst in the region, falling nearly 1.3% to 26395 points, solidfiying the falls weak firming resistance at 27000 points:

Japanese share markets advanced on the BOJ held and Kuroda’s comments despite a stronger Yen, with the Nikkei 225 closing 0.4% higher at 22044 points. The USDJPY pair had a false breakout before the BOJ meeting and then inverted to test the 108 handle:

The ASX200 finally put some decent runs on the board, all because today’s unemployment print is likely to give the RBA a clear run to another rate cut, lifting 0.6% to 6717 points.  The Australian dollar fell straight through ATR support at the 68.30 level that was broken post the Fed meeting overnight as the unemployment rate spiked, sending it down through the 68 handle:

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

The economic calendar now ramps up to listen to the outcome of the BOE interest rate meeting, the last one before The Final Episode of Brexit goes live the end of the month..

Comments

  1. The fur is flying !

    https://www.nakedcapitalism.com/2019/08/michael-hudson-why-frances-coppolas-the-case-for-the-peoples-quantitative-easing-is-for-banks-not-the-people.html

    “..So Hudson built a massive straw man based upon things I either didn’t say at all or said in a different context, and then wrote a piece knocking down this edifice in order to present his own ideas as a better solution. He hadn’t the honesty to discuss my actual recommendations…”

    https://twitter.com/frances_coppola/status/1174362215417339904?s=21

    This looks like something for the pouched crusader and Sweeper!

      • If you have not read and understand the material is a bit presumptuous to make uninformed opinions.

        MMT is being administered by quasi monetarists – neoclassical/new keynesian economics and a political system that inhaled Friedman’s gasses or did you miss the bit about changing NAIRU, JG buffer, public health and education, and an state run environmental based stimulus program.

        Coppola just wants to pump money into the market via peoples debt incurred to offset decades of wage suppression to make BSD investors whole.

        • Not presumptuous at all. If you have not read and understand the material, you actually have no other choice but to make uninformed opinions.

          That is why we have the internet.

    • Frances Coppola has a history and lest we forget is a positive money advocate, that has baggage attached pft.

      Hudson’s entire record speaks for its self, most importantly ethical.

      Maybe like Browns smoothies she should stick to music: Among other things, she designed risk management systems for NatWest, and financial and regulatory reporting systems for Midland Bank (now HSBC) and RBS Group.

      • Frances is more your cup of tea!

        She gets about as cranky as you do when I poke fun at her banking blind spot.

        Hudson has no time for your private banking buddies as is clear from his review.

          • Evidence to support your claim pft, see being contra to the AMI position does not automatically make one pro control fraud or other anti social destructive behavior, but when AMI self awards itself the money puritans and all others are operatives of the ev’bal banster dark forces you’ll get that.

            I mean have you seen whats happened to Muskgrave and Robert Mitchell after going full OT bush prophet after a spell. Look I studied the Babylonian debates and PIE stuff before knowing of Keynes experiance or Hudson’s late foray, so I have an understand of Keynes feelings of going mad in the process. Hell Hudson could not get replies from anthro departments until setting up a dept that did not run afoul of tripwires. Unfortunately a lot of this stuff is like building cities on top of cites ad hoc and not according to some grand theory of everything, which then is implemented with the flick of a switch, and I would remind per the Cambridge Controversy that capital is not static.

            Very much enjoying the chats with the old economist at his Queenslander I’m nicking up, discussion of dynamics and perception of reality with special interests skewing things. Funny thing is he is positive in the long run, but acknowledges a bumpy road to get there, well see I guess.

          • “..Evidence to support your claim pft, see being contra to the AMI position does not automatically make one pro control fraud or other anti social destructive behavior, ..

            Who said anything about control fraud?

            I said you have constantly insisted for YEARS that there is NOTHING wrong with the role of private banks in the monetary system and the problem is just “a few bad apples” corrupting it.

            Hudson does not agree with you.

            Not even a little bit.

            Hate to be the one to burst your bubble but he is a “money crank” and by that I mean he does not like modern banking.

          • Again that plank in your eye …. with a side of esoterica …

            Look my position has always been markets are not self regulating, notions about equilibrium is some strong voodoo to base an antiquarian, chip on the shoulder, about human agency and society full stop E.g, Markets aka Trading and Government [divine right or social democracy screw the pooch but, a free market authoritarian is OK] .

            You and yours are trying to have their cake and eat it too, on one hand you want to control [tm] the money supply by force [full reserve quasi austerity] based on some deductive methodology about human responses based on QTM and on the other hand let contractual standards be some wild west affair.

            What I have opposed is your presupposed position on some very fundamental propositions about the human condition and its relationship with our environment – as it changes. That you use banks as a whipping post, to ascribe all ills, and then craft your narrative around it, forwarding a broad social agenda based on questionable foundations is where we diverge.

            Pro tip … Moses was supposed to tap the rock ….

    • ErmingtonPlumbing

      Typical kind of hypocrisy we get from Justin Trudeau with his entitled to rule mentality.
      He knows so much better now whilst denigrating the Working class for not being as “Woke” as he is.
      A truly revolting individual.