Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

A mixed mood in Asia despite the orgy of buying still going on in the northern hemisphere with only Japanese stocks advancing on the whiff of more stimulus measures. Meanwhile the Chinese Yuan hit a new low versus USD again, with offshore trading pushing through the 7.17 handle as other majors kept firm against USD going into the London open after a very mild reversal overnight.

In mainland China, the Shanghai Composite is set for a small loss, down 0.3% to 2836 points, while the Hang Seng Index has tripped over again due to the big protests in the city, down 1% to 23153 points. This takes it back below previous firm support at the 23300 point level, after a big surge previously with the next stage surely looking down for the embattled city-state:

Japanese share markets continued their good start to the week with the Nikkei 225 closing 0.7% higher to 2149 points, while the USDJPY pair was able to hold to its current position after a mild reversal overnight, having rebuffed last week’s high at the 107.80 level:

The ASX200 had a strange session, gapping down at the open, recovering and moving to a new high at lunch and then selling off again in the afternoon to post a mild scratch session, finishing 5 points down to 5775. Meanwhile the Aussie dollar was effectively unchanged against the USD, maintaining above the 66 handle and yet to rollover from its extremely overbought position:

Eurostoxx futures are up only 0.3% or so with US futures also a bit staid as the S&P500 four hourly chart shows the broader stock market wanting to push back above the previous highs and make a run for 3000:

Comments

    • Narrow market without any productive qualities aside from some antiquarian perspectives about storing sunlight or some such mental vagary … with a side of favoring capital back in the day and the search for such was the demise of the weak against conquest for it …

  1. uneventful for me.. things moving in right direction (except for the poo of course) but too early to trade.

  2. 48.5% Down YoY….Yeah….booming. LOL

    New vehicle sales in the Australian market for the month of April 2020 were today announced by Tony Weber, chief executive of the Federal Chamber of Automotive Industries (FCAI).

    “A total of 38,926 sales were recorded for the month. This figure represents a fall of 48.5 per cent over the same period last year (75,550 sales), and the largest single decrease of any month since VFACTs figures were first recorded in 1991.

    Year to date figures for April totalled 272,287 sales, down from 344,088 in 2019, which equates to a 20.9 per cent decline.

    “Clearly, the COVID-19 pandemic has had a major influence on the April sales result, and reflects a downturn in the broader economy right across the country,” Mr Weber said.

    “Figures recently released by the Australian Bureau of Statistics[1] show that 31 per cent of Australian citizens have experienced a decrease in income due to the pandemic,” Mr Weber said.

    “In addition[2] 72 per cent of Australian businesses reported that reduced cash flow is expected to have an adverse impact on business over the next two months.

  3. So, when Europe made announcements about reopening for summer, European travel stocks surged. What happened on the ASX the next day? Travel, leisure stocks mooned.

    Finance stocks up in US? Next day.. banks moon in Australia. As someone mentioned here.. the ASX moves on what Europe and USA do…no mind of its own. Like a toddler copying it’s older brothers.

    • Markets are tightly coupled due to computational tubes and exacerbated by being on the opposite side of a momo trade event and hyper reporting demand pull … fundamentals … lmmao …

      • Makes for some amusement to see companies at almost inevitable insolvency being bid up 10%, 15% plus in a day. In tubes we trust.

        • Serious proposition … hyper reporting of company prospects with shades of equity buffing due to incentives built on wonky maths … got anything to do with divergence from older methodology of semi – annual reporting …

          Seems like a diabolical Scott’s box Pavlovian thingy …

  4. Checking out latest inner west properties for sale on realestate.com. I am noticing some in the $1.5-$2m range being advertised ~20% less than what they were a few weeks ago.

    • Fascist China

      Just a son of a mum and dad, taxable income of less than $80k, having a go and getting a go.

    • ZOMG! They quoted Martin North in a piece about Nathan Birch. Fortuna is bringing these two gods closer together. Soon they shall battle. It shall be one for the ages. The shirts alone will be worth it.

      It’s also worth noting this quote from the savvy Mr Birch.

      “‘I’m really excited. I’m smiling ear to ear … people are saying the property market is going to crash but it’s not going to crash. It’s going to go up.’

      He expects the property market to pick up once again due to the government’s economic stimulus package rolled out during the coronavirus pandemic. ”

      Could Peachy be Nathan Birch. If so, then Reusa never was, and never can be, the greatest troll of all.

      • Always had this gut feeling that Peach was a reincarnation of The Patrician. Here’s one, maybe Peach is Dymphna!

      • What scares me is the possibility that Birch will be right and he will be laughing at us in the future.

        • I suspect he might be. The budget in October will shift the goal posts. The low might be first half next year.

          5% deposit guarantee and $50k FHOG… subprime to the rescue

  5. reusachtigeMEMBER

    So who else is extremely sick of the “Shut. Us. Down” gutless wonders still causing us issues with their ridiculous anxiety mental problems?

    “Oh, our town is nice and we don’t want d1rty interstaters ruining our nerd-job privilege while those around us suffer with extreme economic issues and major profit loss”

    • European visitors to Australia do have a long and successful history of spreading deadly diseases among local communities. They also have never had much time for local customs or laws.

  6. reusachtigeMEMBER

    I find it hilarious that most pr1cks on here think they hate China yet they advocate China’s ways of depriving freedoms. I’m a Trump loving Aussie patriot and wished we had American-style ways of freedom defence instilled in us. Freedom to choose to risk getting the virus. Freedom to protect our profits! If you are fearful, ie a freedom hating commie scumbag, then you have the freedom to hide away and let the strong live their lives! I want some guns.

      • The Traveling Wilbur

        Passing abandoned dealership lots approaching Ipswich a nesting egg – ????

        It isn’t that hard. Not even if you try adhering to basic grammar while you do it. So remind us, why bother?

      • I did a web search and it isn’t a clue from a cryptic crossword. Though, if it was, I wonder what the answer would be.

        • The Traveling Wilbur

          Fourier path ray spectrum.

          And there’s a special place for people who pull siht like that. Warm, very warm and reserved… I’m sure you violated at least one Geneva convention too.

  7. Gold is sick with risk on disease, methinks…sold almost all the rest of my gold and gold stocks today.

    Bought stawks and kept back some AUD. Almost no USD left either.

    Psycho market. Not going to hang onto anything for long – I don’t have the guts. Central bank and govt support is massive, but geopolitics aren’t good and it feels like many things could flare up at the moment.

  8. Oh, I also bought some ASX: ICR two days ago. Interesting company, just listed. Been a great punt so far.

    Shame the market is so psycho – I quite like finding and investing in good ideas…just doesn’t feel like an investor’s market, only a trader’s market…

  9. Just last week the s&p failed to make a higher high, then made a lower low, then whatever, lets just rip up.