Macro Afternoon

See the latest Australian dollar analysis here:

Australian dollar poised for higher as Trump destroys America

It’s all about the Fed as traders await the FOMC meeting tomorrow night with Asian stocks slipping alongside Wall Street overnight.  An election in mid-December in the UK is keeping currency volatility high, although the Aussie brushed aside today’s CPI print, Swiss Franc and gold are falling going into the City open.

The Shanghai Composite continues to pullback with a fall of nearly 0.4% lower to 2941 points, as the 3000 point level remains a too-hard barrier to break. Meanwhile the Hang Seng Index is moving the same way, down only 0.3% to be at 26693 points going into the close, but this stall below the previous weekly high and weekly downtrend line is weighing in the medium term:

Japanese share markets are falling into line as Yen strengthens against USD with the Nikkei 225 closing 0.6% lower, taking back the previous gains to 22834 points.  The USDJPY pair is steadying going into the London session after a volatile night previously, unable to climb above the 109 handle with overbought momentum clawing back sharply:

The ASX200 was the biggest loser, down 0.8% to close at 6689 points, finally breaking the 6700 point barrier with the banking sector dropping over 1% and leading the selloff. The Aussie dollar absorbed the latest (out of date actually!) CPI print and is hovering just below the previous weekly high as momentum tapers off slightly:

Both S&P and Eurostoxx futures are down slightly given the poor lead here in Asia with the S&P500 four hourly chart pulling back from the previous and hovering above the previous weekly high (black horizontal line):

The economic calendar ramps up tonight with German unemployment and CPI prints, plus the latest US GDP release.

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  1. Mining BoganMEMBER

    Well I’ll be buggered! I had internet problems over the weekend and was just notified by the good people at Westnet that they’re refunding two days worth of fees. Two days! Count ’em!

    Still trying to force me onto NBN but. Bastards.

    • TailorTrashMEMBER

      Infrastructure “includes port work “
      ……that base on strayas door step is coming…

  2. 18 hours ago

    America’s largest private coal miner files for bankruptcy

    14 hours ago

    the eighth coal company in a year to file for bankruptcy protection.

    The collapse of the Ohio-based company had long been expected as coal-fired power plants close across the country.

    But, like, Scummo said coal is the future.

  3. Consumer spending in France is down 0.4%. That unemployment rate in Germany becomes very important piece of news now.

    • Fake news! Europe is booming!

      If you drop rates to zero and do Yuuuuuge QE it makes all the problems go away …

      Oh wait …

    • did you move tables? I have done it in the past when I had exactly same encounter/s. I was looked like if I am racist but did not care as I know I am not one and I don’t have to seat next to a pig while eating.

    • Ronin8317MEMBER

      At least you don’t understand what the guy is shouting It’s a lot worse when you can understand it..

    • There are those who assimilate and those that don’t.

      Tragically we appear to be importing a heap of the latter just lately. It’s a sign of the desperation of the sitting Govt. It won’t end well.

    • In SA we’ve had Homestart for several years now, which is basically a very similar program. How the federal program goes will be interesting.

    • Most will move up the beach but what interests me is what will happen with all the multi-million dollar beach-side pads.

      Let them be flooded? There’ll be an uproar! And the taxpayer will wear the cost of inundation mitigation strategies (no doubt)

  4. David Stockman – Reagan’s Budget Director – on Fox news and what he was telling them was sending them into emotional breakdown territory. It was amazing. A Jimmy Dore 10:45 video (with swearing of course) but funny to watch –

    Stockman is a leftie now …. chortle …..

  5. Bit of annecdata – I thought Subcontinental small truck delivery drivers were as bad as it could get. Oh how wrong I was lol. Now I’m seeing a massive influx of South Americans, somehow they speak better English yet are harder to communicate with and generally not very intuitive. All have brand new boots, brand new Kmart hi-vis and all work in a company vehicle for transport comapanies,

    I’m actually starting to miss the subcontinentals and their busted secondhand clothes and boots with a scrap of hi-vis material fashioned into a vest. At least they (or the family leader/racketeer) owned the truck and they mostly understood simple directions after they finally heard you over their Bluetooth ear piece phone call.