The Australian dollar is running riot on highly volatile data today as the Fed easing gale builds:
Dalian iron ore is holding up manfully on more stimulus hopes as Chinese PMIs weakens:
It’s not enough to hold up Big Iron:
Big Gas is down with oil:
Big Gold has an ugly chart with NCM exhibiting four black crows (and yeh, I just made that up):
Big Banks are on the nose as yields threaten to break higher with risk plus absorb ANZ’s nasty. Curve steepening would normally be bullish for banks but given the lack earnings growth these are now dash for trash stocks only:
Similar for Big Realty as more rate cuts fade:
While bonds sell:
Lot’s of signals for ‘risk on’ as the market parties on the obvious that the Fed won’t hike again. It has made anything remotely positive bidable.
But China is still struggling a lot. There is no stimulus yet in sight (though the Fourth Plenum looms as the great white hope) so its capped fundamentally for now.
That means we have a short term worst case for Aussie stocks as the AUD rises but miners fall and banks cop it as the yield trade unwinds.
