Macro Afternoon

A generally positive day across Asian risk markets excepting mainland China, following the good mood on Wall Street overnight. The Australian dollar continued to tank following yesterday’s release of the RBA minutes while the NZD was relatively stable despite an uptick in monthly CPI.Β  Yen strengthened slightly after a big breakout in USD strength overnight while gold steadied at the $1485USD per ounce level.

The Shanghai Composite spiked on the open but couldn’t hold the gains after the long lunch break, currently down over 0.4% to 2980 points while the Hang Seng Index went the other way and has gained over 0.4%, now up to 26618 points and looking to solidify the previous breakout and make another attempt at cracking resistance at 27000 points:

Japanese share markets advanced on the overnight weaker move in Yen and the positive sentiment overall with the Nikkei 225 closing 1.3% higher at 22501 points. The USDJPY pair pulled back slightly following that big move overnight as expected, easing back to the 108.70 level after almost cracking through the 109 handle in what has been a sharp advance this last week and a half:

The ASX200 was also a big mover, finishing 1.2% higher at 6736 points helped by the continuing weak move in the Australian dollar, which has now fallen below ATR support at the 67.40 level. The next level of support at the 67 handle proper may come under pressure in tomorrow’s numberwang unemployment print:

Despite the positive moves here in Asia, both S&P and Eurostoxx futures are down slightly with the S&P500 four hourly chart still showing a reluctance to break over the psychologically important 3000 point barrier, as traders continue to weigh up overseas macro risks:

The economic calendar has a CPI focus tonight, with final September results for the UK, EZ and Canada while advanced retail sales numbers from the US will be an important release as well.

Comments

  1. Mining BoganMEMBER

    It’s back!!!

    Huzzah!!!

    It was the invoking of the great Gods Keiff and Lemmy in another thread that done it I’m sure.

  2. Will be interesting to see results from manufacturers and small/medium service providers in US. Last was few large banks and J&J that moved the market.

  3. FYI: This Warehouse conversion:
    https://www.realestate.com.au/sold/property-house-vic-bentleigh-125173298
    Sold for $1.2M in July 2017.

    Next door was on the market for 2+ years asking $1.2-$1.3M… no takers.
    https://www.realestate.com.au/sold/property-townhouse-vic-bentleigh-126445974
    In the last month or so it was dropped to $950-$1.04M.. went to auction last weekend. Didn’t show up in Auction results but listed as “contact agent” only.

    My guess is that it may have got around $1M… I was kind of prepared to pay up to that (but very on the fence), for the area and to have a place close-ish to the city. But didn’t go to auction because there was a caveat in the contract of sale and I don’t like buying at auction.

    There was not a lot of land, think it was 180sqm total. Shared driveway etc..really well done though. Loved the style. But for me the killer was only 1 garage space. I would have had to rent another warehouse nearby or space somewhere else to store my cars (or still buy further out and have a second property where I could store/work on my toys).

    Just thought I’d share to show prices are still down for certain segments. On the flip side I’ve seen some detached houses sell $200-$300k above guide, rather depressing..

    • Gavin – Bentleigh is fvcked, mate. Stay away.

      Heaps of multi-storey apartment developments and house blocks converted into 2side-by-side monstrosities…or worse. The multi-storey apartments and townhouses absolutely chock-full of vibrants.

      Immensely overpopulated and overcrowded now. It’s jot the Bentleigh you might remember from a decade ago.

        • Which parts? Towards Oakleigh? Oakleigh has always been a bit rough. Knew some kids from school who were in the “Oakleigh Wogs” LOL. Muppets. A couple I’ve heard have since been to Prison, clever kids.

          In my teens I used to walk home from Chadstone back to Caulfield because I’d missed the last train/bus and didn’t have a car. Never felt unsafe.

      • Thanks, I’ve seen loads of that crap going up in the area. The reason this place appealed is it was closer to Brighton than Bentleigh itself. I agree though, these suburbs are being destroyed. I grew up in Elsternwick (next to Ripponlea House), and then moved to Caulfield South, spent a lot of my “yoof” in Elwood, St Kilda, Brighton etc.. Brighton has become a bit stale, but still full of old money.

        Personally I’m still looking North East suburbs (Melbourne’s Green belt) until it stop being Green that is and becomes the next migrant hovel full of town houses and vibrancy. LOL.

      • proofreadersMEMBER

        Obviously, should become the display village for vibrants intending to move to Straya?

        • LOL, quite funny. A friend of mine is Indian (but grew up here mostly) and lives there. ;). he’s probably sick of it himself. All these Johnny Come lately types ruining the vibe.

      • Any thoughts on good locations for someone (like myself) to rent?

        Entirely new to Melbourne, and looking at moving there.

        I didn’t mind St Kilda area, but a brief visit doesn’t tell much

    • We sell houses are peachy
      gav in love peagav lolol like I said gav the race has been 1 but u can keep circling the track be I’ve made my Stack lol

    • Great article, that’s exactly the strategy I’ve deployed and managed to save a huge deposit. It wouldn’t have happened with a term deposit though. Had to invest in stock market index and the stock market has had a massive bull run. So it all comes out in the wash really…. as in no different.

      • Have saved about 1.5m over the last 10 years while renting. Probably could have done better as have no shares (outside super), no bitcoin, no investment properties and no inheritance – just used crappy Term Ds and saving accounts. Oh, and last 5 years have been part time. Gave up on obtaining property years ago, and am happy for others to slave away on their mortgages. It’s very hard to give up 4 day weekends too.

  4. Mining BoganMEMBER

    I don’t do stalkbook but Lovey monitors the local community page for lost dogs, people and such and she says break-ins are the new black. Two down the end of the street in a week, one while everyone was asleep in the house. It was really rare but I’m hearing about them on Jack’s weight loss journey far too often.

    The recession has arrived.

    • Well, the horse better not put a hoof wrong… or he’s …. hors-d’Ε“uvres.

      What inquiring minds want to know is: “Did he bang a unicorn once he got up on the mountain?”

      • The Traveling Wilbur

        What do you call a horse stuck up a mountain with a Korean?

        Lost.

        What do you call a horse stuck up a mountain with an Australian?

        Very, very nervous.

    • and now who do we blame? Foreigners of ourselves for allowing this to happen? Where is the outrage to bring the gov down and force fresh elections and put in place someone with integrity.
      Correct me if I am wrong but that guy came from OS with all that cash right? That thing is not set of keys so he could have hide them up his rs.

      • Mining BoganMEMBER

        Been saying it for years, it’s our own greed and ignorance that got us here.

        Nothing more, nothing less.

      • and now who do we blame? Foreigners of ourselves for allowing this to happen?

        Foreigners of course. HatingCriticising your own culture is treason.

  5. lol
    “Economist Paul Krugman wrote that by 2005, it would become clear that the Internet’s effect on the economy is no greater than the fax machine’s.”

    • The Traveling Wilbur

      How else will all the regionalised APS staff get their Uber eats delivered?

      It’s only fair.

    • Ask around Beetrooter’s rootin’ grounds how is the ‘enforcement’ industry going, making sure that all those who cart water do so within the Council limits and no further? Oh, and how about them guards at various public places to protect against water thieves who pull up and fill IBC containers with precious gold…

      But they certainly need more vibrancy in them regional centers….

      • Are they actually putting guards on public water sources? Got any links for that? It would not surprise me at all, and it also doesn’t surprise me it hasn’t been reported.

    • Mining BoganMEMBER

      I might go and loiter out the front of his sh1thole and wait for the pudgy dwarf to speak to me like that.

      “One of these days Alice, boom…”

      • blacktwin997MEMBER

        True story: One weekday morning I was getting a lift down from the 44th floor of the Sofitel in Collins street. Lift doors opened, i stepped in to see one other passenger staring at his phone. A few moments later i realised that it was none other than that beloved Greek hospitality wealth redistribution phenomenon, George Calombaris!

        Unfortunately the story more or less ends there as i noticed a camera in the corner. Waiting for him to exit first, without looking up from the phone he grunted something and shambled out.

        So anyway there’s one location data point for our Day Of The Lampposts.

    • Timmeh, thanks for that. I only wish Kyle did not keep talking over the top of military bloke. Nonetheless it ends up a good interview. The point made early on about the CCP being a different entity to “China” is something that lots of westerners seem to struggle with or at least not give sufficient weight to. I know what I’m getting for Christmas.