Macro Afternoon

Following the bounce on Wall Street overnight, Asian stocks came back to end the trading week with relatively strong sessions. However the week in aggregate can be written off a scratch session with stocks in a clear holding pattern as the realisation of a “2nd” wave of the coronavirus throughout the US is gaining hold. Currencies were somewhat muted with USD gaining a little while gold slipped slightly.

In mainland China, the Shanghai Composite remains closed, while in occupied Hong Kong the Hang Seng Index gapped lower with a selloff below the previous daily lows, finishing 0.8% lower at 24586 points:

Japanese stocks rallied with the Nikkei 225 finishing 1.2% higher to take back its previous losses, finishing at 22512 points and staving off a new weekly low. Meanwhile the USDJPY pair retraced slightly following its recent bounce, falling back to just above the 107 handle as momentum on the four hourly charts inverts:

The ASX200 was the best in the region this time, closing 1.5% higher to 5904 points but still looking weak on the longer term charts. The Aussie dollar found some buying support but only just with a failure to get back above the 69 handle quite telling here going into the end of the week:

Eurostoxx futures are up 0.5% or so while S&P futures are flat with the four hourly chart still poised here at the recent session highs just above 3060 points, as it too goes nowhere for nearly two weeks now:

Have a nice weekend and stay safe!

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Comments

  1. US just recorded it’s highest daily infection rate. The second wave is now bigger than the first and going exponential.
    Death rate usually lags about 2-4 weeks after infection rate which will show a big jump.
    I guess we have reached peak capitalism; That is capitalism at ALL cost.

  2. Hugh Pavletich

    UNITED KINGDOM COMMERCIAL PROPERTY …

    Just 18pc of rent collected by commercial landlords … UK Telegraph

    https://www.telegraph.co.uk/business/2020/06/25/just-18pc-rent-collected-commercial-landlords/

    Concerns that some tenants who can afford to are choosing not to … (behind paywall) … read more via hyperlink above …
    .
    .
    Shopping centre owner Intu on verge of administration … UK Telegraph

    https://www.telegraph.co.uk/business/2020/06/26/administration-beckons-shopping-centre-owner-intu/

    Earlier this week the company said it had lined up KPMG to oversee an administration if no deal was struck … (behind paywall) … read more via hyperlink above …

  3. Well today I requested $10k from Super. Not that I need it, but I want to pay down the Mortgage further. I had intended to use the first home super saver scheme originally, but it was so convoluted that I didn’t manage to do it before settlement, so in a way this is the backdoor way of doing it.

    I have about $80k in an Irish pension that I can’t access yet, but am trying to bring back here and out into my Australian fund. Mainly because in Ireland you get taxed when you draw down the pension where as in Australia you pay tax on the way in, but not way out. So it kind of acts like a tax shelter in Australia. So my intention is to pay down the mortgage as quickly as possible and then use the surplus cash in future to pay extra into Super.

    It’s all swings and roundabouts really but gives me a little headroom. I applied for several jobs this week, but only heard back from 1 so far. Interview next Wednesday. So things are extremely slow.

  4. reusachtigeMEMBER

    I’m finding that the relations lounges are stocked full of Thai girls again instead of Chinamen ladies. How it’s happened I don’t know but it’s farkn ace! You can actually simulate a conversation with the Thai girls.

    • haroldusMEMBER

      I’m curious. Is it “Nice weather eh”, or more “Woah slow down, you got a train to catch”.

      I guess either way the response is the same.

      “Mmmmm mmmmmm mmm mmmm mmm, mmm mmmmm!”

          • Don’t think you do The coronavirus throat swab triggers gag. I have six sisters. Porn culture dominates and they fear for their daughters (and sons). Let’s lift the discussion.

          • haroldusMEMBER

            Here’s a good idea.

            Whenever you see “haroldus” at the header for a comment, just scroll by it. That’s “bypass” for People Magazine readers.

            You will be immensely happy and it will improve both of our qualities of life immeasurably.

            Plus, you will have made the world a better place.

            Bye!

          • The Traveling Wilbur

            I guess we can’t blame 3d for his world view after all. Not entirely.

            Seems his parents didn’t give a siht about the future of the planet. Either.

            Edit: are any of the six of them hot?

            Edit: asking for a friend stagsy.

  5. Arthur Schopenhauer

    I was hoping to see Army Checkpoints at all the Darebin Creek Bridges today. A couple of Bushmasters and some blokes with Steyrs, at Livingston St, Bell St, Southern Rd. Saw on-one.

    Dutto what is going on? Seal the bastards in!

    [Edit: At Heidelberg Rd too.]

    • adelaide_economistMEMBER

      I think it’s the same budget cuts that explain why Australian papers are full of a story about a party in the US where lots of them got covid19 and yet no photos or criticism for the same issue erupting right now in Victoria. I can’t imagine what it could be.

    • Rorke's DriftMEMBER

      The bloke was running interference in the rollout of HCQ. He should be fired not just moved aside. He is a vaccine expert, makes it worse. HCQ does away with the need for a vaccine, so he is conflicted and acted against the President directive. How can you be critical of Trump for that. If any employee blocks the rollout of a govt program what else should you do. It’s not his call to object, he should have resigned if he disagreed with Trump.

      • Ronin8317MEMBER

        Did you read the article? He wanted a clinic trial first, because it has not been proven to be effective and the are serious side effects. The clinical trial eventually found it to be ineffective, and the FDA tell people to stop using it to treat COVID-19.

        https://www.npr.org/sections/coronavirus-live-updates/2020/06/15/877498151/fda-withdraws-emergency-use-authorization-for-hydroxychloroquine

        His action prevented a lot of unnecessary death.

        • Rorke's DriftMEMBER

          Ronin, his action hasnt prevented any deaths and may have caused some. FDA says ineffective. That doesn’t mean dangerous, its been available and widely used for 40years with well known dosage, side effects and everything known. Only a question of whether it works for covid or not. Think. There is no political value in the US President promoting that and taking it if he didn’t know it works. FDA is a captured regulator like most and beholden to an industry that makes no profit on a drug like HCQ that’s out of patent and now very cheap. Better to discredit it and push for an eventual vaccine. Wake up mate, stop reading the propaganda.

          • You cannot be serious.
            To borrow from your logic … Red wine has known theraputic benefits, and with known quantities has known side effects …. only question is whether it works on COVID. And it is not in patent so a “captured regulator” would downplay it in favour of a vaccine.
            And your reliance on Trump uses it so he must know its good … ummm no his doctor was bullied into it and didnt fight on the idea that on those doses it would not harm him so it wasn’t worth fighting him on it.
            You need to confine your commentary to where you have expertise. Trying to use your ignorance as a wellspring of argument and calling it thinking is just ironic.

  6. any suggestions on what to buy for home office? I am facing rather large tax bill and trying to take advantage of instant write-off. Bought small amp and bookshelf speakers, 2x high end XPS laptops, 49″ dell monitors. What else?

  7. So the other day had to take a relative to emergency dept and the doc turned out to be the son of a old old friend of mine. So got to talking about covid stuff and i asked if they had good supplies of PPE and stuff. So yeah they were fully stocked up but he related to me how they ditched all the PPE they were given imported by Mr Rich Mining magnate with all his the china connections. So whats his face was apparently fully re-reimbursed it wasn’t donated, despite the media spectacle making it look like that. So he said none of the PPE was up to scratch with one senior doc saying he wouldn’t use it in a vet clinic let alone a hospital. It is realy annoying to me that this was not made public in a more sustained manner so the general public is aware of things like this. The only public info i recall was one paragraph in the paper from the local health minister saying some items where not up to spec and thats all. There was no media follow up at all. No statements from any medical body in this state.

  8. Goldstandard1MEMBER

    I’m driving to Bendigo from Melb Inner east tomorrow. I EXPECT zombie quarentine control points at Calder Hwy Maccas and Woodend. Shall be driving through any cop car barriers. Need to see my old man after 3 months…….

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