ASX bath of blood brims over for banks

The Australian dollar is up and away this morning. It’s forming a bullish ascending triangle pattern. Or, an even more bullish cup and handle:

Bonds are bid:

But XJO is held back by banks which are on the way to retesting the lows:

Big Dirt is soft all over:

As banks sink with capital raises and divi cuts the new reality:

Big Chunt has clearly moved into something other than realty:

The question is for wider stocks, can the world’s largest household debt economy growth generate domestic demand as its banks sink from sight?

Share

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.