ASX rally fades as oil heads for zero

The Australian dollar is roughly stable this morning:

XJO is soft:

Bonds are bid:

Oil is the man of the moment as it falls towards zero:

Make no mistake. If the Fed had not waded into junk debt, the great bear market rally would already be cooked as oil patch spreads explode.

Big Iron is mixed:

Big Oil is down but not out. Brent is not following WTI. I’m not sure why. Perhaps OPEC is flooding the US with oil or global buyers have shifted to it from US supply:

Big Gold sigh:

Big Banks are going nowhere:

Big Realty is enjoying a Domain update that claimed listing volumes are up year on year. Bad news for prices:

How long can this thing be held together, I ask ya?

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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.