Macro Afternoon

The outright optimism from a finalisation of a trade deal between US and China yesterday has been switched to that of caution with most stock markets putting in scratch sessions in response to the stall on Wall Street overnight. The Kiwi is dropping on an unexpected rise in New Zealand unemployment rate while the Aussie dollar is just holding above 69 cents as commodities remain strongly bid.

In mainland China, after cracking through the 3000 point level previously, the Shanghai Composite is in retracement mode going into the close, down 0.4% to 2980 points and unable to gain any traction. Meanwhile the Hang Seng Index is putting in a scratch session, currently up only 0.1% to 27719 points after recently clearing the 27000 point level and the weekly downtrend line last week:

Japanese share markets have also abated somewhat following the big surge yesterday with the Nikkei 225 closing only 0.2% higher at 23297 points. This was despite a huge leap in the USDJPY pair overnight, but during the Asian session Yen buyers have stepped in to pull back to just above the 109 handle:

The ASX200 is the worst in the region, falling a solid 0.5% in the risk off mood to be at 6660 points, despite a lower Aussie dollar overnight. The Pacific Peso fell back below the 69 handle and is struggling here just above weekly support at the 68.75 level:

Both S&P and Eurostoxx futures are down slightly with the S&P500 four hourly chart  showing a retracement below a firming bearish rising wedge pattern with the terminus just above ATR support at 3050 points which bears (sic) watching:

The economic calendar tonight is very Euro-centric, with factory orders and services PMIs dominating while in the US there’s some more Fed speeches to keep an ear out for.

Comments

  1. GunnamattaMEMBER

    A government with Sweet FA credibility has confessed to borrowing some from a public sector agency…….

    Liberal Party figure admits Chinese-language federal election signs were meant to look like AEC material
    https://www.abc.net.au/news/2019-11-06/josh-frydenberg-gladys-liu-high-court-challenges-election-result/11675738?section=politics

    Liberal official admits Chinese language signs were meant to look like they came from AEC
    https://www.theguardian.com/australia-news/2019/nov/06/liberal-official-admits-chinese-language-signs-were-meant-to-look-like-they-came-from-aec

    Liberal admits election day signs were designed to create false impression
    https://www.theage.com.au/politics/federal/key-liberal-figure-admits-chinese-language-corflutes-designed-to-look-like-aec-20191106-p537yg.html

    They’ve gone from big noting back slapping hallelujah smug to policy bereft incompetents in six months….and the Ozeconomy is about to shoot the rapids

  2. The Traveling Wilbur

    At the risk of beating a dead whorse, can we get some official recognition for Bill E. going on MB please? I don’t care who he’s doing to get the inside track on the RBA movements, but he has, and that’s what really matters. In fact, he seems to have his finger so close to the pulse of the RBA one can only assume he’s measuring it via Phil’s prostrate.

    If we can’t stump up for errecting a statue, how about an annual Bill E. day? We could do a few little things to mark the occassion each year, like changing the MB fox over to a similarly styled line-drawing of Bill E. for the day for example. I have some skills in this area and would be happy to donate my time and IP. It’s a worthy cause. haroldus could write the anthem for the day that autoplays whenever the home page loads.

    • ErmingtonPlumbing

      So if we are to dramatically reduce water use for agricultural production to return Said water to the environment and to allow indigenous people to live traditionally of the land, how can we continue to keep increasing our population at the highest rate in the OECD?

      I remember reading somewhere that the Biodiversity of pre agriculture Britian was only capable of sustaining a human population of 2-300 thousand people.
      What size human population could Australia sustain using traditional indigenous food producing methods?

      It was a good impassioned speech against Greed, courption and Capitalism from old mate but what solutions did he actually offer?

      • desmodromicMEMBER

        EP he wasn’t suggesting a return to a subsistence existence but the restoration of culturally significant resources. The solution suggested was put the water back into the river, simply really. Instead narrow interests extract water, even on low flows, and various governments have sold water rights to offshore interests that have no investment in the health of the locals or the environment. Poet, painter, fisher or indigenous have only a small voice in the management of water resources compared to those that want to use water for profit. The reckoning has arrived and the answer to your question is ‘we can’t’, the land is dying.

        • ErmingtonPlumbing

          I’m all for the democratisation of decision making and liked, and agreed with, all the criticisms made by old mate.
          I just didn’t hear any solutions being offered other than to “Return” the water that as you point out isn’t there.

  3. David sinclair says I can live for ever feed me Seymour if you got money you live for ever has their ever been a better time to remove money from the stupid and live for ever only australia

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