Macro Afternoon

Today’s private PMI manufacturing print in China, combined with some stimulus talk in Japan and the usual “must cut rates” talk locally is seeing a small boost to Asian risk as we end the week, but not the trading session overall as more prudent traders wait for tonights US NFP. The Aussie dollar has come back above 69 cents while the selloff in USDJPY has abated somewhat, with stock markets generally up across the region.

The Shanghai Composite found some ground finally, currently up 0.8% to 2950 points while the Hang Seng Index is up about half that, currently at just above 27000 points or 0.4% higher as it gets ready to breakout above the weekly downtrend line:

Japanese share markets fell back but not as much as expected given the big selloff in USD against Yen overnight, the Nikkei 225 currently down only 0.4% to 22817 points.  The USDJPY pair is stabilising just above the 108 handle after the big dropoff overnight, wiping out all of the previous gains but looking considerably oversold here:

The ASX200 is barely in the green goign into the close, up only 0.1% and ready to write off a bad week, still below the 6700 point barrier, while the Aussie dollar brushed off last night’s mild selloff to be just a few pips above 69 cents against USD and looking to re-engage for further gains:

Both S&P and Eurostoxx futures are up with the S&P500 four hourly chart still showing quite a bullish mood despite this week’s fits and spurts with the latest Fed cut and hopefully a good NFP print tonight providing a catalyst for more upside:

The economic calendar concludes the week but starts the month with the big one – US unemployment or non-farm payrolls – which will set the risk course for the next month. Have a good weekend!

Comments

  1. Banana ManMEMBER

    Hey Nikola, i have appreciated your input recently. Some good calls. Just reflected on it this afternoon and thought i’d say that. Good on ya, top little Aussie.

    • MB. THe issue with the wind farm is that the backward looking climate denier, Maurice Newman, owns a farm in the district. He has been fighting the wind farm for 10 years. Logic does not apply.

    • Cattle producer John Carter has been fighting wind farms around Crookwell for the past 22 years, and welcomed the decision to reject Crookwell 3.

      As a long-standing opponent to turbines, and a sceptic of man-made climate change, Mr Carter wrote a submission to the Independent Planning Commission calling wind turbines ‘scenic vandalism.’

      Yes John, how about the scenic vandalism of clearing your farm to run cattle? Or is that different because it makes you money John? Fvcking hypocrite.

    • The Horrible Scott Morrison MP

      These things are eyesores which have a deleterious impact on the local visual environment. They cause massive health problems for nearby residents, which is scientific medical fact. They kill significant numbers of native birds. They don’t produce any power when there’s no wind, or indeed when there’s too much wind. The GE turbines have a recent history of collapsing and injuring people when it’s windy. Only a sociopath would support these projects in favour of clean burning Aussie coal and natural gas.

          • lol – remembered something about Matt. When I worked at CSR as plant operator, I caught up with your guys in the kitchen just before shift started and they were talking about Matty. I commented that he was taking drugs based on how he behaved during the games. I was literary told “shut up you fckn wog, you have no idea. Just shut up” – the wog part was a friendly thing btw. So they kept telling me that Matt is a legend etc etc. I told them that I am aware of his incredible ability to read the game and his skills but I am referring at his latest increase in physical endurance and weird behavior.
            Anyway, the very next day (just a funny coincidence) papers came out with the shocking news. I am turning up in the kitchen before the new shift starts and was instantly told “shut up you fckn wog..” lol. I was rubbing it for months – couldn’t help myself.

    • Yes & no, depends on if the receiving service is digital or not. Telstra’s analogue landlines, caller controls the call. ISDN, NBN, mobile, etc, either end can terminate the call

  2. Farewell free speech and the right to protest.

    https://www.theguardian.com/australia-news/2019/nov/01/scott-morrison-threatens-crackdown-on-secondary-boycotts-of-mining-companies

    Scott Morrison has branded environmental protesters “anarchists” and threatened a radical crackdown on the right to protest in a speech claiming progressives are seeking to “deny the liberties of Australians”.

    In a speech to the Queensland Resources Council on Friday, the prime minister said a threat to the future of mining was coming from a “new breed of radical activism” and signalled the government would seek to apply penalties to those targeting businesses who provide services to the resources industry.

    I wonder if people will boycott Morrison’s favourite Cronulla Sharks and Hillsong instead.

    • The Horrible Scott Morrison MP

      Only a fool would buy a car which came with a $33,000 battery replacement bill after 7 years. Electric vehicles are a disgraceful fraud perpetrated on a brow-beaten unsuspecting public. These workers should be offered help to retrain in the Australian clean-burning coal and natural gas industries, where they can start doing some good in the World.

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