The forex market has the Depressionberg deflation budget spot on:
So does the bond market:
But the ASX bath of blood has it wrong:
Nor is the rise driven by the sectors that it should be, that will benefit from the lower AUD. It’s not Big Iron:
Nor Big Gas:
Nor Big Gold:
It’s Big Banks that are up, on broker upgrades:
Yet there is nothing bullish about a deflationary shock budget that drives the central bank ever deeper into unconventional policy tools below zero that destroy bank margins a’la Japan and Europe.