Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asia stocks continue to drop as economic fears surrounding the Chinese coronavirus continue to mount alongside the growing number of official cases. Forex markets are relatively tight with the Kiwi dropping slightly on the announcement of a new election, while Bitcoin is fast approaching the $9000 mark:

Japanese share markets were relatively stable alongside Yen throughout the session with the Nikkei 225 closing only 0.5% lower to 23234 points, still below the key 24000 point resistance level. The USDJPY pair has been trading tight throughout the day, overnight just below the 109 handle here and potentially setting up for a swing higher:

The ASX200 fell as expected – and the business news headline were equally as expected as over the top – with a 1.4% loss erasing the previous two week’s gains, finishing the day at 6994 points. The Australian dollar continues to defalte into modicum support levels at the mid 67’s vs USD and remains in a dominant downtrend going into the RBA meeting:

Both S&P and Eurostoxx futures are lifting slightly after their big gap down on the Monday open with the four hourly chart of the S&P500 showing a minor push back to the starting point nearer the 3260 level. This is quite oversold and will likely bounce on any good news, with the potential for a swing if price closes above the high moving average:

The economic calendar continues with US durable goods orders and consumer confidence numbers for January, but watch the Senate “trial” too, could be explosive!

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Comments

    • “This is one of those really difficult times when elected officials have to weigh up all the evidence and this has not been easy,” Mr Hazzard said.

      Well he certainly wouldn’t be used to that, sounds hard.

      Oh and the Department of Diseasology Parramatta lolz

    • ErmingtonPlumbingMEMBER

      Changed their tune pretty quickly didn’t they.
      I wonder how that decision played out.
      A reaction to the Twitter frenzy on the subject?

    • Lol – earlier today Dan Tehan the education minister was having a go at private schools for locking down students/asking them to stay away, worrying ti would affect enrolments. Not an issue if parents have bought a house though.

  1. Started buying into WSA in order to take position in Nickel. Based on EU will push for fiscal stimulus in environmental tech and will most likely try to kill combustion engine in passenger cars.

    • WSA is good as a producer. MCR is also worth a look as a good option for a nickel play.
      Had some very good exploration results recently and should have more to come. Very easy path to production with ore sold to BHP who have a lot of spare capacity.

      • agree. I traded MCR while ago and still have them on my watch list but are bit expensive right now. If the fall below 57c I might consider.

    • The effects of Wu Tang have been more cultural than economic. The impacts of some of its more virulent strains, such as Method Man and RZA, are hard to quantify. Even though there was initial outrage and panic most believe that Wu Tang has been a benefit and not a detriment of the human race.

    • I don’t take advice from anyone who believes that GDP is a useful measure of anything at all. Particularly not when they are children.

    • happy valleyMEMBER

      As Scotty from Marketing would probably agree, the LNP are the best-at-everything managers – Straya is in the safest of hands. Move on, nothing to see here. But do remember, any problems Straya has are Labor’s fault.

    • Mining BoganMEMBER

      I’m getting the impression that the foul McKenzie beast and Scummo’s office are leaking against each other. Scummo leaking against her to take the heat of him and McKenzie is cranky that she’s been hung out go dry so has leaked enough info to suggest all the initial planning was done by Scummo staff.

      It would be entertaining if it wasn’t so corrupt.

  2. Mckenzie.

    It would be better if she stayed on as a minister and sealed the govt’s fate at the next election.

    • As if anyone cares. If someone on that last plane out of Wuhan that the government didn’t stop turns out to be carrying the virus that kills a quarter of the Australian population AND house prices drop by a quarter, then the government has cause for concern.

    • There’s plenty more McKenzie’s in their ranks – however I thought Scomo dwarfed them all, and that didn’t count for squat last election.

      • happy valleyMEMBER

        +1 Plus you have to love Bridget, as she looks like a fun lady and that’s what government should be all about?

        • ErmingtonPlumbingMEMBER

          True,…she does look like she could tell a filthy joke and keep up with the boys on the Piss.

          I Can’t help but love Sheilas like that.

      • Pity about her 4 kids who have been whitewashed out of her profile.

        Shotgun McKenzie suits her well.

      • I think this is the quote MB needs:

        To put Ms Arndt’s university degrees in historical context, when she achieved her Masters in 1973, colour television had not yet come to Australia; the top song on the charts was Tie a Yellow Ribbon Round the Ole Oak Tree; the median house price in Sydney was $27,400; and immigration was still governed by the White Australia Policy.

        Judging by the following paragraphs this was, indeed, about the last time Arndt learned anything new.

        At the time Ms Arndt was formally studying her Masters in human sexuality at UNSW, homosexuality was illegal throughout all of Australia, and still classified as a mental illness by the American Psychiatric Association.

        Rape within marriage was still not recognised as a crime, and there was no such thing as no-fault divorce in Australia, which made escaping an abusive marriage extremely difficult.

        Children born out of wedlock were still legally classified as ‘illegitimate’, and the Diagnostic and Statistical Manual of Mental Disorders (DSM) was still only in its second edition. Almost half a century later, it’s in its fifth edition and has undergone significant re-writes as the field of psychology evolved.

      • Mining BoganMEMBER

        Can one get a wombat companion? They’d be awesome. Better than a small horse that thinks it’s a big dog. That’s kinda twisted.

        • My mum’s dad died pretty early (long before I came along).

          Anyway a funny story is the man my grandma married again had a pet wombat that I think he saved from a dead mother. It was very protective of him. This is in Denman/Muswellbrook in the 60s.

          And the wombat HATED my grandma, and would constantly try to attack her everytime she visited during the courtship. Like head butting and nipping.

          I’ll ask mum what happened to the wombat.

          Sadly we put my mum’s last remaining sibling in the ground today. Mum was the youngest, so hopefully she’s got a couple of years left, and hopefully she goes before me (she’s lost tonnes of relatives in the last few years).

          • Mining BoganMEMBER

            That’s no good. My mum put one into the ground last week. Three down, six to go. Dropping like flies.

            The wombat. That there story is why one would be awesome. They’re cranky little bulldozer bastards. I hope it wasn’t a case of the wombat or me. I’d never stop wondering what happened to it.

          • Thanks. We were never that close, but just part of the family firmament.

            It makes me realise I need to make my own family rites. As small as we are.

            But seeing the devastation of my aunt’s sons (my cousins) makes me feel I shouldn’t continue to be such a huge figure in my daughter’s life. My mum spent a lot of time in the palliative care room, and with our cousins over the last few weeks. They were distraught, but all managed to make a reading or tell a story.

            Ah fvck who knows.

  3. “Minister urges scepticism as fake virus news spreads”

    Communications Minister Paul Fletcher has urged Australians to be sceptical of what they read online as misinformation on the coronavirus outbreak spreads rapidly.

    https://www.smh.com.au/business/companies/minister-urges-scepticism-as-fake-virus-news-spreads-20200128-p53vjn.html

    Pity the same Minister didn’t urge Australians to be sceptical of what they read online regarding arson and back burning.

  4. They can fLick right off! So a couple of foreigners are trying to dictate what we call our stadia. Margaret Court holds some unpopular views, no doubt. But she won all those slams for her athletic ability, not her morality, and if they don’t want to get paid heaps to come over here and provide commentary then they can just stay at home. McEnroe is a shyte commentator anyway.

    https://www.abc.net.au/news/2020-01-28/tennis-greats-call-for-margaret-court-arena-to-be-renamed/11908140

    • Correct. She’s a great sportswoman, and a better player than any of those soon-to-be-forgotten insignificant mediocre nonentities like that flea McEnroe could ever dream of being no matter how much acid they dropped. I just saw some great matches at the open in that stadium. They could name it “Islamic Transgender LGBT Migrant FHB Chinese Student Property Portfolio” stadium and I wouldn’t care. It’ll always be “Margaret Court Stadium” to me.

  5. Arthur Schopenhauer

    Cases of Coronavirus in Hubei have risen from 1423 to 2714 in 24 hours. Deaths have jumped from 76 to 100. Recovered has moved from 43 to 45.
    Early days, but not looking good.