Macro Afternoon

Probable chart captions: “There is no second wave. VP Pence 15th June 2020” aka “Sometimes two plus two is five” aka “there is no spoon”….

So we end the trading week with a lot of confidence that risk market are not reflecting economic reality but fiscal and behavioral pressure with most Asian stock markets ending higher in today’s session.

In mainland China, the Shanghai Composite is up nearly 1% to 2967 points while the Hang Seng Index is up 1.3% to 24774 points, finally showing some positive activity to make a new weekly high, almost out of its funk as momentum builds:

Japanese share markets were mixed with the TOPIX putting in a scratch session while the Nikkei 225 lifted 0.5% to 22478 points taking back the previous losses. Meanwhile the USDJPY pair is going almost nowhere with a fairly tight session to finish just below the 107 handle before the City open, remaining relatively depressed here and just above last week’s low at the 106.80 level:

The ASX200 was up almost 1% throughout the session, breaking through the 6000 point barrier but fell at the close to put in a scratch session, gaining only 0.1% to 5942 points. The Aussie dollar is holding on with a small bounce of very short term support at the 68.40 level but is still in negative momentum mode on the four hourly chart:

Eurostoxx and S&P futures are up around 0.3% so we could have a small bounce back to finish the weekly session, as the S&P500 four hourly chart tries to get back to its early week high around the 3160 point level:

Have a good weekend and stay safe!

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  1. Keep in mind that the drop-off in the NY, NJ and CT cases has been somewhat offsetting the rise in other states. As this curve flattens out it has less effect on dropping the numbers and if the trump states dont act now its going to lift the national number up noticeably


    Are New Zealand’s constant border blunders stalling the trans Tasman bubble ?

    … How is border control managed in Taiwan ? …

    Govt ponders charging as border isolation costing $4k per person … Henry Cooke … Stuff New Zealand

    Housing Minister Megan Woods says the border isolation and quarantine system will cost $81m by the end of June, and the Government is considering starting to charge travellers for it.

    Woods took over ministerial responsibility for border isolation and quarantine on Friday after a bungle saw two women who had not been tested granted compassionate leave from isolation.

    Asked at her first press conference in this new role about the cost of the scheme so far, Woods said it was expected to hit $81m by the end of June, with 21,500 Kiwis moving through managed isolation.

    That puts the cost at close to $3800 per traveller. … read more via hyperlink above …
    Coronavirus: Border isolation ‘more like incubation, not quarantine’ … Katrina Williams … Stuff NZ

  3. happy valleyMEMBER

    Had a “clip the ticket” experience with ANZ today, which I find to be the most mercenary of the big 4 to deal with as a term deposit holder. If you have an SMSF with a company as trustee (probably more usual), ANZ will “shave” the deposit rate by around 0.3% pa v. an SMSF with an individual(s) as trustee(s). Rolled the term deposit over with ANZ today but in the next few months will aim to move all SMSF and personal business elsewhere.

    • innocent bystanderMEMBER

      be interested to see what you find out.
      I have found all banks treat corporate trustees as businesses and not super funds, or treat them differently to personal customers. either way, never a good deal.

  4. Hill Billy 55MEMBER

    Sometimes laughter isn’t the best medicine, but its all one is left with. Client is due a refund from his latest BAS, however the ATO will not release it because he has outstanding BAS’s from 2004. I kid you not, 2004!

    • Lord Winchester EntwhistleMEMBER

      This “tax office” outfit sounds awfully lenient! Methinks they’re not trying quite hard enough! I’ve directed the chancellor of my treasury to have thrown in the stocks anyone who is behind 6 months in their dues! And this fellow has been given grace for 16 years! I’d be strongly considering sending this alleged tax office to the stocks to consider their application!

  5. Gee I come here to get away from the mainstream fake news but it seems it’s following me. MB lose credibility every time they make political calls and Labor and Trump are no different. Since when have the polls been a reflection of reality? What makes MB think they are smarter than millions of Trump Americans which they think are idiots?

    • Lord Winchester EntwhistleMEMBER

      My dear fellow I really do fear for your future. Every appreciator of Mexican culinary delights knows one puts a soft wrap (Gentlemen prefer Missionary Wraps) under the taco to catch stray morsels whereupon completion of that tasty taco one rolls up that Missionary and pounds away on the spoils contained within its soft embrace!

          • Meh… got nothing to prove to anyone… alcohol never worked altering the ol’ brain. I’d lose the eye-hand coordination, but the ol’ synapses would still be there… and to be honest, I never liked the thought of losing control over the self … so there.

            Coffee in the morning though, oh yeah! Gimme!

    • truthisfashionable

      I sure don’t, I close my laptop open the fridge crack open a cold one and its Friday drinks. Sure I am a bit sick of the Wiggles being the house band but the crowd is always nice.

      I don’t miss trying to herd the pack of cats out of the office at the same time, trying to negotiate which pub to go to because Carol wants an artisan cocktail and the rest are happy with a dirty Tooheys, only for a third of the group needing to rush off mid-drink because its their night to cook dinner.

      Unless this is just a Sydney thing?

      • DominicMEMBER

        Sounds pretty standard. I remember my younger days, drinks most nights, ludicrous hangovers, trips in to work the next day. Didn’t make it from time to time. Good memories ..

        • haroldusMEMBER

          My mate Max tried to go to uni once with such a bad hangover he chucked on the bus.

          Being polite, he did it in his jumper, rolled it up and put it in his bag.

          • drsmithyMEMBER

            Being polite, he did it in his jumper, rolled it up and put it in his bag.

            Reminds me of the time I shattered a bottle of Bundy in my bag throwing it over a fence on the way to a party.

            Dealing with a persistent and pungent odour is a larger problem when you’re 15 and it’s your school bag. 😀

      • migtronixMEMBER

        In Melbourne we drink at our desk
        Then drink in the kitchen
        Then drink at the pub
        Then drink at strippers
        Then stop at the 24 hr bottlo on the uber home.

  6. DingwallMEMBER

    Meanwhile the Robinhooders are ready to buy buy buy……….. hopium (yet again) on China buying a few more soybeans …. yet back in reality land………….

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