Macro Afternoon

See the latest Australian dollar analysis here:

Macro Morning

The big selloff on Wall Street has been more or less replicated here in Asia, although with less downside, as S&P futures race back in late trade to try to cover the falls overnight.  Bitcoin remains depressed and is just hanging on to the $10000 level while gold is slowly slipping, almost ready to break below weekly support at the $1930USD per ounce level:

In mainland China, the Shanghai Composite finished nearly 2% lower at 3255 points while in Hong Kong the Hang Seng Index only fell half that, or just over 1% to 24359 points. Japanese stock markets had similar falls with the Nikkei 225 off by 1% to 23032 points but the USDJPY pair is slowly deflating below the 106 handle:

The ASX200 had the worst session, falling just over 2% as it continues to reject the 6000 point level, closing at 5878 points while the Australian dollar is just maintaining its position here above the 72 handle:

Eurostoxx futures are down 0.3% while S&P futures have stopped moving higher and are now selling off again, with the S&P500 four hourly chart indicating another potential rollover to get back to the 3300 point level:

The economic calendar is fairly clear tonight with some mortgage, private jobs and oil stock data out of the US.

 

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Comments

    • Mining BoganMEMBER

      No idea, but I liked the bit where the Green lady accused Labor of being racialists because federal LNP members wanted the Chinaman lady investigated for dodgy political connections.

      I don’t know how anyone can be racialist. It’s confusing and so very, very tiring.

    • Looks like some liberal members really wanted Jing Lee to be president but someone broke ranks and beat her to it.
      Jing Lee apparently has some connections with the Chinese consulate in Adelaide

    • peterbruceMEMBER

      SA liberals have been brawling internally since the Liberal Movement (Steele Hall) split in the late sixties. Even a long spell in Opposition has not helped them to sort it out.

    • Jumping jack flash

      The meat processing industry is basically all Chinese and Koreans.

      Now that the source has dried up they’re crying about not being able to fill positions? Maybe if they raised their base rates to something that made it possible for their lowliest workers to become eligible for the crippling amounts of debt that are completely essential?

      A lot of the smaller places have been hit by that China postulating though.

  1. NEW ZEALAND: OPPOSITION NATIONAL PARTY PROMISES NEW NATIONAL INFRASTRUCTURE ‘BANK’ …

    National Party pledges consolidation of several existing entities into a national infrastructure “bank” to provide finance and advice for central and local government infrastructure projects … Gareth Vaughan … Interest Co NZ

    https://www.interest.co.nz/news/106966/nationals-infrastructure-bank

    The National Party is pledging to establish a national infrastructure “bank” to provide finance and advice to central and local government infrastructure projects by consolidating several existing entities.

    National says the National Infrastructure Bank would take an inter-generational, long term approach to the financing of infrastructure in New Zealand. It would employ professionals with valuable technical, legal, financial and economic appraisal skills, lifting the quality of engagement in the infrastructure sector, the party says. … read more via hyperlink above …

    … ADDING CONSTRUCTIVELY TO THE OUTSTANDING INFRASTRUCTURE FUNDING AND FINANCING PROGRESS BY THE CURRENT LABOUR – LED GOVERNMENT … WITH UNANAMOUS POLITICAL SUPPORT … AS EXPLAINED BY URBAN DEVELOPMENT MINISTER PHIL TWYFORD …

    https://www.macrobusiness.com.au/2020/09/macro-afternoon-959/#comment-3978226

    NEW ZEALAND: Urban Development Minister Phil Twyford explains in 2 1/2 minutes the reforms late July (in case you missed it) … essential viewing …

  2. who dares to forecast what happens tonight?
    I say red all over again. May open green to suck in few bag holders but then slide into red.

    • Well some good news today at least. I expect you are correct and libs will ride this to consecutive election wins. I expect labs will split internally as a party unable to win an election unless the more conservative elements are able to take control. Do maybe lost as a party for a long time

    • “Prefessor” Chen Hong has a lean and hungry look. I’ve seen lots of soldiers with that look, and precisely zero academics. Just looking at his picture makes my hackles rise.

      If that pr1ck isn’t ex or current military I’ll eat my turban.

      And that flabby idiot politician looks like nothing more than food, waiting to be eaten without knowing it.

    • I was told, before the last election by a senior education lobbyists that the Libs would have 10yrs of government.

  3. 75th General Assembly of the UN looks like being interesting…..Mr Putin is leading the Russian delegation, Imran Khan the Pakistani delegation……other leaders may want to go as well now or be left out of the loop.

    • Maybe I’m in the minority but I don’t have a problem with this type of situation where an industry books out a hotel and pays for it. As long as police are checking that quarantine is being adhered to there is no reason why the tax payer should foot the bill. But I don’t understand why the AFL has looser quarantine restrictions.

      • Don’t have a problem with it too, it just the whole saga started when tom hanks got the covid back in March

      • Hill Billy 55MEMBER

        Yep the AFL are on borrowed time. They are a bit too cocky for their own good. The big thing Annie has got wrong. The Brisbane Roar players ans officials are only out of quaratine after their playing in y=the hub in Sydney/Newcastle yesterday, yet the AFL (and NRL) can swan around without a caution. Laughable!

  4. Tesla shares plunge as it fails to make it into S&P 500 index

    https://www.smh.com.au/business/companies/tesla-shares-plunge-as-it-fails-to-make-it-into-s-and-p-500-index-20200909-p55tpn.html

    😆😆😆

    S&P Dow Jones Indices decided to add online craft seller Etsy, semiconductor equipment maker Teradyne and pharmaceutical technology company Catalent to the S&P 500 instead.

    Etsy, for instance, has posted 13 straight quarters of profits, compared with Tesla’s four consecutive quarters of profit.

  5. COVID-19 is, in the end, an endothelial disease
    Peter Libby, Thomas Lüscher
    European Heart Journal, Volume 41, Issue 32, 21 August 2020, Pages 3038–3044,

    Abstract

    The vascular endothelium provides the crucial interface between the blood compartment and tissues, and displays a series of remarkable properties that normally maintain homeostasis. This tightly regulated palette of functions includes control of haemostasis, fibrinolysis, vasomotion, inflammation, oxidative stress, vascular permeability, and structure. While these functions participate in the moment-to-moment regulation of the circulation and coordinate many host defence mechanisms, they can also contribute to disease when their usually homeostatic and defensive functions over-reach and turn against the host. SARS-CoV-2, the aetiological agent of COVID-19, causes the current pandemic. It produces protean manifestations ranging from head to toe, wreaking seemingly indiscriminate havoc on multiple organ systems including the lungs, heart, brain, kidney, and vasculature. This essay explores the hypothesis that COVID-19, particularly in the later complicated stages, represents an endothelial disease. Cytokines, protein pro-inflammatory mediators, serve as key danger signals that shift endothelial functions from the homeostatic into the defensive mode. The endgame of COVID-19 usually involves a cytokine storm, a phlogistic phenomenon fed by well-understood positive feedback loops that govern cytokine production and overwhelm counter-regulatory mechanisms. The concept of COVID-19 as an endothelial disease provides a unifying pathophysiological picture of this raging infection, and also provides a framework for a rational treatment strategy at a time when we possess an indeed modest evidence base to guide our therapeutic attempts to confront this novel pandemic.

    https://academic.oup.com/eurheartj/article/41/32/3038/5901158#.X1T5CvHoUN0.twitter