Macro Afternoon

Despite a very positive lead from Wall Street overnight, Asian equities fell back in the main, with Aussie stocks treading water for the second day in a row. The USD fell back against Yen and the Aussie, the latter on a run due to Governor Lowe’s comments on interest rates this morning, while gold and Bitcoin are finding some life later in the session.

The Shanghai Composite pulled back all of its previous gains to close nearly 0.9% lower at 2954 points, as the 3000 point level remains a staunch barrier while the Hang Seng Index has also proven unsteady with a pullback of 0.4% to close at 26779 points, but still just above the weekly downtrend line:

Japanese share markets were the standout, with the Nikkei 225 closing 0.4% higher to 22974 points despite Yen strengthening a little throughout the Asian session. The USDJPY pair is struggling to make any headway above the 109 handle and looks very toppy here on the four hourly chart with overbought momentum clawing back sharply:

The ASX200 put in another scratch session despite a strong open, closing 5 points higher at 6745 points. The Aussie dollar leapt out of its funk from Friday night and pushed through to the mid 68’s on the back of Lowe’s comments but is finding a little resistance going into the City open:

Both S&P and Eurostoxx futures are down slightly despite the surge in Wall Street overnight with the S&P500 four hourly chart holding at last nights record high, but not advancing yet:

The economic calendar is relatively quiet with US house prices the main release of note.

Comments

  1. Ronin8317MEMBER

    Hot off the internet, the 2 dollar shop commercial building in Eastwood, Sydney, was sold for 7.25 million at auction this afternoon. The site is only around 300 square meters.

    The Chinese dumb money is back!!

    • Yes I think do eventually. I know when I prayed my fears about inflation in Straya a while shop a few agreed and a fee said it was impossible given global over supply in productive capacity, but I do believe that the devaluation of all fiat currencies against gold is starting to pickup pace

      • I tend to agree, and won’t be surprised to see BTC and Gold continue to do well in a low interest rate environment. For the same reason house prices are going up and other assets (such as vintage cars) they are a hedge against that “non existent (according to central bankers) inflation”. Of course every day goods are not inflating much, although I’d argue they are. But all kinds of assets are going up.

    • $580,000. Median apartment price in 2005 was $280,000. Imagine the value of your residence by 2020.

      I imagine that if they are only confirming that there is no flammable cladding, that means there is below spec rebar, poor water sealing, and flammable electrical wiring. You will need to borrow $150k to fix up the concrete cancer, then borrow another $500k to strengthen cracks in the building, and then either be electrocuted or burnt alive by faulty wiring.

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