ASX bath of blood drains as US fiscal hopes rise

Thursday, 1 October 2020

The AUD is up and away again as more scuttlebutt on US fiscal stimulus stokes sentiment. Nobody seems concerned that the White House and House aren’t going to make the call. A resistant senate is and tomorrow is its last day:

Bonds are easing:

Stocks are adding back yesterday’s losses:

Big Iron is bouncing:

Big Gas still looks fooked:

Big Gold is not out of the woods:

Big Banks even less so with locked downtrends:

The market has basically discounted nothing but good news again.

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.