ASX dragged into global bath of blood

David Llewellyn-Smith

Friday 4 September 2020

AUD is taking some hits this morning:

Bonds are calm:

XJO gapped lower 2.5%. It will get more interesting technically if break into the 5800’s:

Big Iron is hit:

Big Gas more:

Big Gold is up:

Big Banks are still trending lower:

But the real action is in the credit regulatory arbitrage sector with huge moves now daily:

Nobody knows if this is the bust. We can only say that conditions are perfect for it.

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.