Macro Afternoon

Asian stock markets have started the week on a strong note despite the slump on Wall Street on Friday night, namely because of the weaker Yen sending Japanese stocks higher and a firm Chinese PMI print. The USD has weakened against Aussie and Kiwi which have gapped higher on the usual Monday morning open while gold is just holding on to its meagre Friday session gains.

The Shanghai Composite was up nearly 0.4% on the back of the PMI print, but has closed with a scratch session at 2872 points while the Hang Seng Index is trying to recover from its Friday losses, up 0.4% to 26461 points. The daily chart clearly shows that inversion and its going to take a lot more upside and positive momentum to get it back on track above 27000 points:

Japanese share markets did the best in the region, namely on the back of a much weaker Yen throughout the session with the Nikkei 225 closing 1% higher to 23538 points, as it starts to really build above daily support at the 23000 level. The USDJPY pair gapped slightly higher on the Monday morning open and then advanced swiftly, taking out the previous week high and almost getting to the 110 handle:

The ASX200 finally pushed above a scratch session, eking back its Friday losses to close 0.2% higher and remaining well above the 6800 points barrier. The Aussie dollar is finding some life here after a volatile Friday night session, continuing its bounce off last week’s extreme low at the 67.70 level as trader’s prepare for tomorrows RBA meeting:

Both S&P and Eurostoxx futures are confident here with the S&P500 four hourly chart showing an intention to try to match the pre-Thanksgiving high from last week and advance to a new record high:

The economic calendar overnight starts the week with some big ones, with ECB President Lagarde testifying to the European Parliament, then its the US ISM manufacturing print for Novmeber. Look out tomorrow for the RBA meeting as well…its ramping up!

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Comments

    • The Traveling Wilbur

      At the risk of being scrolled over as no one would expect another comment, that interviewed language expert (for balance no doubt) is leveraging one aspect of language-use (societal change and growth) against a rule with a defined purpose. There is a distinct difference. She may have well as argued about a full-stop not needing to go at the end of a sentence if people didn’t quite know where to put. it

      Fckn Beetoota Advocate worthy. Well spotted MiBo.

      And I wrote a paper at uni (or tried to, it was only undergrad) on the difference between a ‘rule’ in English and a norm/current convention – why do I mention this? Because after I submitted it was when I found out there isn’t a single fckn linguist who thinks there’s a thing in English that’s a rule as ‘we’ understand them.

      Ever since then I’ve split every fckn infinitive I could get my hands on. Very joyfully.

  1. Josh Frydendork

    Anyone hear Nick Xenophon sticking up for Huawei on the ABCs Radio National.
    Not just a sell out on sale to the highest bidder, but a straight up traitor!

    Just like IBM selling the Nazis a population census/punch card system that allowed for a much more efficient extermination of the Jews, Xenophon is a direct supporter of an authoritarian military dictatorship with global ambitions and a harsh contempt for Democracy.
    Xenophon is now clearly an enemy of our Nation State and should be held is the same contempt reserved for any other terrorist.

    • Hill Billy 55MEMBER

      So his laws must be fantastic with all those bankers behind bars, then! Can’t wait to see the same against the Unions, they’ll work a treat!

    • This could be a harder sell for Slowmo than some of his other PM marketing spin jobs.

      Because Aussies don’t actually believe he has sorted the banks. Not even remotely.

      Rule One of politics – don’t tell the punters something THEY know isn’t true.

      • The Traveling Wilbur

        I used to think that too. Then Trump was elected.

        Two-years later I finally understand what the term ‘vested interest’ really means. Well, thanks to that and the recent election result here to be fair.

        • Wilbs, don’t misunderstand… things the punters KNOW to be true / untrue is not necessarily the same as things they ARE / AREN’T true.

          Rule is – the former matters. The latter is largely irrelevant, although if it matches the former, it’s convenient!

          • The Traveling Wilbur

            Yep. Now imagine a universe where what youre’ describing has held for 100+ years, and then, suddenly, to those not paying attention, people (voters) accept being told what they Know is not true.

            Thats’ the universe you are inhabiting.

            If that’s an opinion, its’ one thats’ shared by every Government Minister that resigned before the last election was held here in Australia. Remember that happening? They all thought what you do. And failed epically.

        • Things KNOWN to be true include:

          House prices should always go up.
          Tax breaks are your just rewards and must never be taken away.
          It’s never your fault.
          The banks are [email protected]

          There are many more. MiBo probably knows the full list. Go against any at your peril.

          • Yeah Skip, which is why he’s prime minister and people like us who are interested in who and why … aren’t.

          • So you have decades of PMs and Presidents residing over the same paradigm and the best we can do is focus on the one warming the seat at the time …. is that about it?

          • Skip, interesting point.

            I think the paradigm isn’t quite the same now. I think getting elected has always been a relatively muddy business. But it seems that in the past there were slightly different standards of behaviour self-imposed upon the person in the seat, once they were actually in the seat.

            Call me idealistic but a generation or two ago Ministers used to regularly resign over relatively minor discretions whereas these days not an ounce of shame is displayed.

            (Wilbs there’s a split infinitive in there for you too).

          • Call me idealistic but a generation or two ago Ministers used to regularly resign over relatively minor discretions whereas these days not an ounce of shame is displayed.

            IMHO things have gotten noticeably worse ever since Abbot became PM.

            It seems now even the facade of propriety isn’t worth an effort.

    • The comments section of the SMH has gone rogue about everything MB has been banging on about for years. It seems in the last 19 months the plebs have finally woken from their housing profit slumber. Immigration, housing, corrupt politicians, foreign interference, crush loaded cities etc etc

    • It would make my day for a union official to say we endorse this plan and then list everything that the financial industry has done and how little they have been punished for it.

  2. Ronin8317MEMBER

    An ex-employee of the company ( from like 25 years ago) came to visit the boss for a chat. He’s from HK originally, family immigrated to Australia in the 80s, then moved back to HK to open his own business in the 90s. He is thinking of moving back to Sydney due to losing hope in HK’s future, especially the police’s force.

    He is looking at buying an apartment in places like Chatswood, Bondi Junction, St Leonard and even Barangaroo. @[email protected]

    The HK money flight may explain the spike in top end property prices.

  3. Property to double in the next 10 years…

    “A median priced unit, meanwhile, will grow from $695,000 currently to $1.24 million by the end of the next decade, according to the analysis of CoreLogic and ABS figures.”

    Houses in the Penrith council area, which at a median of $650,000 are currently among the cheapest in Sydney, will cost a much dearer $1.26 million in 2030.

    https://www.realestate.com.au/news/average-home-prices-will-hit-7-million-by-2030-in-some-sydney-regions-if-growth-trends-continue/?rsf=syn:news:nca:news:spa:strap

  4. TailorTrashMEMBER

    Jeez those multicultural Singaporeans are racist ..
    …as are the Venetians and the Barcelonians …..
    Population pressure is starting to squeeze ….as the water levels rise …… GDP and consumption
    is the measure to be sure ….ain’t that so Scomo ?
    …..and you got to love it …free trade with India …gets you sh1t loads of Indians hustling for a buck ….nice to see it’s not just straya realising this

    https://amp.scmp.com/week-asia/politics/article/3039999/indian-community-chinese-filipinos-singapore-feels-strain

    • I honestly thought it was a joke when it came out. Theres plenty of fanboi’s for it though. I think it looks stupid, but a lot say it’s unique, which it certainly is. Big space age looking hummer for all the guys with small willies.

        • I reckon they realised that 98% of people think “electric car” means “small, short range, hipster-carrying flimsy tin can”. So they decided to build one that was bigger, faster and stronger than a regular truck, make it bulletproof, and make it look like spaceship crashed into a block of titanium cheese.

          They pretty much nailed it except the bulletproof part.

          I reckon it is a much smarter play than it looks.

          • That’s my thought also, Elon blustered through the presentation but didn’t touch on half of the innovation features. After looking it up and going through it I became a lot more interested in it. Would make an excellent towing vehicle for my vintage gas cars. :).

            The shape can be explained by the use of stainless steel, it’s very hard to form (unlike regular steel) therefore “forced” very rigid shapes. Same reason I believe the DeLorean was very wedge shape (also stainless steel).

            It also really makes a statement.

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