Macro Afternoon

By in Australian Dollar, Australian Shares

| 114 comments

See the latest Australian dollar analysis here:

Australian dollar rides the golden bull

Sentiment swung back to hesitation this afternoon here in Asia with most bourses reversing course from its sharp rise to the start of the trading week, led by dual breakouts of coronavirus – both Tokyo and Victoria. The euphoria over the surge in Chinese shares is wearing off with US and Euro futures looking down going into the London open, with currencies also feeling the strength of USD again.

In mainland China, the Shanghai Composite was up over 1% at one stage, but has slowed down in its advance towards the close, up only 0.7% to 3361 points. Meanwhile in occupied Hong Kong the Hang Seng Index has reversed course after gapping higher at the open, down 0.5% to 26202 points, but this has only taken a little bit off the shine of this big breakout:

Japanese stocks put in poor sessions too, with the Nikkei 225 falling nearly 0.7% to 22558 points with the USDJPY pair bouncing off support to be at the mid 107 level and back to its start of week opening point:

The ASX200 has eventually closed with a scratch session, losing only a handful of points after being up at the open but sold off due to the Victorian viral outbreak,  closing 0.1% lower at 6012 points. The Australian dollar initially held at the RBA meeting outcome – no change – but has since sold off going into the City open, falling straight back to the mid 69 level and threatening the uptrend from last week:

Eurostoxx futures are down about 0.5% while S&P futures are also rolling over, down 0.4% now and looking to take back some of last night’s exuberance with resistance at 3130 points needing to hold here:

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Comments

  1. boomengineeringMEMBER

    Well I never.
    Thinking about it, being one of the condemned hated boomers how is it I have a house when the younger hating crowd had a head start on me because I restarted below zero and they started at zero at the same time.

      • boomengineeringMEMBER

        My kids were older and more costly. Had to defend and win in court battles against Sid Fischer’s barristers and other battles as well. Had Gym business experience but not much use with landlords giving us grief. It was one
        e battle after another. The previous engineering was long before it reactivated so no contacts, start from scratch except for work knowledge.

          • boomengineeringMEMBER

            Bought our house 13 years ago when were renting a derelict house but started saving dep before that. Spent $100K on the youngest son to do a course after he finished school when the wife was earning $13/hr. He just bludged through and the school went broke just before his final exam so he gave up..

          • Mega65MEMBER

            Sorry boom had a reply, comment eaten as usual around here, too late to do again. Always happens when you don’t Ctrl C.

            In short though, if kids are sh1t 99 out of 100 it is because parents are sh1t. If my son turns into a loser he won’t be the one to blame, I will for raising him in a sh1t way.

        • Arrow2MEMBER

          Boom, simple. When I was young I didn’t need to buy a house and I enjoyed that freedom for a long time. A house was simply not a priority. Whereas you had a family and less time up your sleeve so it was a priority.

          • boomengineeringMEMBER

            Arrow2 kudos to you as you have good memories not available to someone under the pump. My memories were mostl grief upon grief.

          • Arrow2MEMBER

            Far, far more kudos to you Boom – you made it out of a seemingly bottomless pit and you kept not just your sanity but your family, good humour and health. Full points in the game of life mate. 👍

        • boomengineeringMEMBER

          Couldn’t afford a gun or solicitor so defended myself and won them all.

          • boomengineeringMEMBER

            Yep I had 2 choices but chose the metal ones as some of those adversaries were not unfamiliar with them

    • GavinMEMBER

      Because of your work ethic boom. But prices are so high now it’s very difficult. 13 years ago it wasn’t nearly as bad as today. Wish I bought then.. but I was broke.

      • Mega65MEMBER

        Same situation as me. Now I have more money than most will, but I still won’t buy one of these overpriced crap shacks.

        • GavinMEMBER

          Just wrote a long reply which got sin binned. So the TL;DR version is.. I don’t regret buying because I feel what I bought was fair value. If you can find that the. Jump on it. Having a place to call home is worth it. I hated dealing with horrible landlords and RE agent property managers.

        • boomengineeringMEMBER

          Mega, Not a case of sht kids or sht parents. It’s something nature instills in all offspring to incite leaving the nest. Be aware of this when your time comes although the wife says their lack of motivation stems from witnessing how hard I worked just to lose it all.

          • Jumping jack flash

            This.
            Kids are funny things. When mine were vèry young i used to think that it was something we were doing wrong but now they are a bit older i realise that even though i can tell them what the right thing to do is, i dont have any control over what they actually choose to do.

        • boomengineeringMEMBER

          Mega, in your case just wait a bit longer and you will ‘be rewarded with lower prices then when the time is right jump in like Gavin did.
          Btw like Gavin I wish I’d jumped in earlier as had 2/3rd deposit saved.

          • boomengineeringMEMBER

            Fat finger
            1/3rd deposit saved but was waiting for prices to fall. Then just bit the bullet.

  3. Hugh Pavletich

    CRUISE SHIPS: 30 plus TO BE SCRAPPED WITHIN 18 MONTHS ? …

    Many older cruise ships may not survive the pandemic … Johanna Jainchill … Travel Weekly

    https://www.travelweekly.com/Cruise-Travel/Many-older-cruise-ships-may-not-survive-the-pandemic

    Carnival Corp. last week began to make good on its pledge to remove six ships from its global fleet within 90 days, with Costa Cruises’ Costa Victoria being the first ship to leave one of its brands.

    Carnival said in mid-June that it was accelerating plans already in place to shed some of the 100-plus ships flagged within its nine brands. The Covid-19 pandemic pushed up those plans, and Carnival said the first six would be followed by more. … read more via hyperlink above …

  4. Ukraine fnMEMBER

    Australian Govt warn travel to China could end up with arbitrary detention .

    Our relationship is officially down the gurgler .. good luck getting students back to the Uni’s now.

      • nyleta

        Won’t be too long……no way the school holidays haven’t spread it through NSW and she is still going to open the border to NSW on the 10th. Just a matter of time.

    • The Traveling Wilbur

      Domino? Incubator of economy-smashing preventable disease more like.

      They could not have stuffed this up more. Salvaging defeat from the jaws of near victory (total). If we were to endure all that economic pain for good reason, why allow for it all to be undone in just a matter of weeks. Max possible pain. Worst outcome anyway? Looking like we should just have chosen to be Sweeden directly earlier if this is how it’s going to end up anyway after all this effort. Sigh. I mean this makes Qlders look pretty clever. That should tell you something.

      • NikoMEMBER

        “If we were to endure all that economic pain for good reason, why allow for it all to be undone in just a matter of weeks.” – the Australian way.
        Just look at what kind of society we became. There are so many fire victims not getting any help and this has been widely reported by some media – but Libs nearly won Eden Monaro. The Australia of the 90s would have given Labour a victory of a magnitude that would have forced Libs to change the PM.

        • Bear Bullwinkle

          That’s true. Aussies have a lot to lose these days from even a minor curtailing of the ponzi that could result from a dangerous radical like Albanese getting a tip of the hat.

    • GavinMEMBER

      I am feeling smug because I said we would be back in lockdown within a couple of weeks of eased restrictions. I was probably off by 2 weeks. 🤣

      • Mining BoganMEMBER

        Well yes, but that’s like saying one of the two teams in a final will win it.

        After seeing the vision of Chadstone on Mother’s Day everyone knew we were going back under.

        • GavinMEMBER

          I’m sure NSW will be back in lockdown again also lol. I can’t see how they will dodge the bullet.

  6. migtronixMEMBER

    You always won everytime you placed a bet
    You’re still damn good
    No one’s gotten to you yet
    Everytime they were sure they had you caught
    You were quicker than they thought
    You’d just turn your back and walk
    You always said
    The cards would never do you wrong
    The trick you said
    Was never play the game too long
    A gambler’s share
    The only risk that you would take
    The only loss you could forsake
    The only bluff you couldn’t fake

    • Wing Nut

      Australia’s population in 2020: 26 million
      Australia’s population in 2003: 20 million

      Put in perspective, in 2020 there was 1 new car sale per 59 people, on 2003 it was 1 per 45.

      • Mining BoganMEMBER

        I remember a time when a new car in the neighbourhood was a source of excitement for everyone. Then it became new cars for everyone, even first time out. Maybe we’re reverting back to a simpler world.

        WuFlu may just be doing more good than harm.

        • Jumping jack flash

          I agree completely. I was thinking something very similar the other day walking to work from the bus stop looking at all the new cars driving around.

          90% or maybe more of them would have been bought by using debt, and only could have been bought by using debt.

  8. stagmal

    was going thru a bin in the main street and some bogan feral came p to me and started threatening me with ascientific b.s about how i could get the virus from the bin for some reason (???)

    MATE IF THERES AN OUTBREAK OF COVID 19 IN DUBBO ILL BE HUNTING U DOWN

    i was like “if i get covid ill be hunting U down so i can cough on u” and he got even madder

    • mdseeMEMBER

      If only

      Instead we’re planning to pump them in ASAP even with internal borders shut

      Pure genius straya

  10. Dyllip

    Why is all the footage from the Melbourne public housing towers coloured women with babies? Noone in public housing should be able to have children for starters. Why is public housing being occupied by migrants when the waiting list is explosive for locals secondly…. *Sigh, this country.

    • SnappedUpSavvyMEMBER

      It’s Melbourne dyllip, Australians always ALWAYS come 2nd or 3rd or whatever an Indian security guard says

      They use Indians who have been in the country two minutes to judge how they should act at AFL games

      Useless spineless people that need to harden the fck up and have some fckn pride in themselves FFS

      • The Traveling Wilbur

        Well, that presents certain difficulties of scale, but a damn good scrubbing would go a long way with most of them.

    • ram

      I sympathise with those stuck in these towers.

      Highlights immigration is too high , that we allow these living conditions it lowers the floor on so many levels.

      These people aren’t to blame. It’s the gubbermint.

  11. migtronixMEMBER

    Boomers oh boomers
    How i hate you all
    A rhyme is too pleasant
    A tool to describe
    The infamy and ignominy
    Of your generations
    Disgrace.

    But rest assured, I’ll write about you and warn
    All that is to come..

  12. migtronixMEMBER

    Boomers
    Boomers
    Hell-is-here-yall
    Boomers
    Boomers
    Hell-is-here
    Boomers
    Boomers
    Hell is here
    And they all
    Should
    Covid off!

  13. migtronixMEMBER

    I wish I was in
    Queenie
    Away away
    I wish I was Queenie
    Where shooting coons
    Is ok
    Away away
    Away back there in
    Queensland

  14. migtronixMEMBER

    I follow the Moskva
    Down to Gorky Park
    Listening to the wind of change
    An August summer night
    Soldiers passing by
    Listening to the wind of change
    The world is closing in
    Did you ever think
    That we could be so close, like brothers
    The future’s in the air
    I can feel it everywhere
    Blowing with the wind of change

    • Ukraine fnMEMBER

      The SMH is as bad as the BBC not reporting on the grooming gangs in the UK and the subsequent Govt report that they don’t want to release to the public because “it’s not in the public interest” more like if the public knew the results a certain group would be “asked” to leave.

  19. GavinMEMBER

    I know someone who has Covid-19 now. Says he and his family only show mild symptoms so far.. and he’s not very healthy either. 40+ so should be in the risk category.

  22. migtronixMEMBER

    But if you must go to work tomorrow
    Well if I was you I wouldn’t bother

  23. migtronixMEMBER

    I dreamt about you last night
    And I fell out of bed twice.

    15 minutes with you
    Oh I wouldn’t say no
    Well people said Eden-Monero
    Was easily led
    And they were half
    Right

  24. footsore

    That little experiment didn’t last long.

    https://www.bbc.com/news/uk-england-53315702

    “At least three establishments announced they had shut their doors again just days after reopening at the weekend.

    They were among hundreds of venues that welcomed customers after three months as lockdown measures were eased – most apparently with no problem.

    But crowds descending in some towns and cities prompted fears social distancing was being disregarded.

    The Lighthouse Kitchen and Carvery in Burnham-on-Sea, Somerset, said it was “slowly” working through a list of customers who had left details at the weekend and staff were awaiting their own test results.”

    • The Traveling Wilbur

      That’s what happens when everyone decides they want Yorkshire pudding and broccoli and cheese at the same time.

      Crime against humanity dodged for now.

    • GavinMEMBER

      Like the Honey badger, Covid-19 doesn’t give a shyte. It does what it does. It doesn’t care about economics, debt, elites, power structures, borders, rules, neoliberalism, game of mates, it gives all those concepts the bird.