Macro Afternoon

See the latest Australian dollar analysis here:

Australian dollar pops and drops on Evergrande vs Fed

Stock markets continued to have divergent fortunes across Asia with only mainland Chinese shares advancing, despite a massive drop in Evergrande shares and bonds while Japanese political machinations continue to unravel. Risk currencies were basically unchanged, as was Bitcoin as it remained just above the $46K level while gold is really struggling here after breaking below the $1800USD level previously, currently at $1791 and finding only a modicum of support:

The Shanghai Composite was able to climb slightly, finishing nearly 0.5% higher to 3693 points while the Hang Seng Index was put in sudden reversal mode, falling over 2% to close at 25787 points. Japanese stocks finally took a breather after its epic run higher with the Nikkei 225 finishing 0.6% lower at just above 30000 points:

Australian stocks had some of the steepest falls with the ASX200 selling off sharply to close nearly 2% lower at 7369 points while the Australian dollar finally paused the deflation from its Friday night over-reach, finding some support at the 73.70 level as short term support builds:

Eurostoxx and S&P futures are down nearly 0.7% going into the London open, with the four hourly chart of the S&P500 showing price wanting to break below the 4500 point level, as momentum remains oversold and European stocks looking to drag risk taking back once more with US stocks following:

The economic calendar ramps up with the latest ECB interest rate meeting and subsequent press conference, followed by US initial jobless claims.

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    • The Travelling Phantom

      You are early today! Usually you join after I go to bed..what do you do for work ? Trading in the stock market? Hopefully tomorrow will be better

      • Nah… some nights I can’t be arsed to post. I’m supposed to finish about 3pm .. but, since I’ve got f*ck all to do for now,I just keep on going…

        As to what I do for work? Well, someone points me at sh*t and I go and give it a good kicking… ours not to wonder why

  1. WA State Budget looking good. And if WA remains shut, some of the predictions on the wages growth and unemployment rate look solid.Iron ore forecast is questionable though. Decent investment in hospitals and infrastructure. Hospitals especially, as the government has been in the cross-hairs recently on “ramping” and lack of staff.

    Maybe the MB boys will do a detailed article on this over next day or two.

    • Jumping jack flash

      Too little too late with regards to hospitals, but certainly they need to do something.

      Privatisation agenda by eroding public hospitals is all fine and dandy until a pandemic hits… i hope the Drs. et al made out like bandits on their hip replacements and various cancerectomies while the going was good.

  2. Double Vaxxed Superspreader

    The two ugly stepsisters Gladys and Kerry’s ‘Freedom Day’ proposal is bit of a damp squib. It’s going to be a hard sell to the non-virus states if that’s what the future looks like — even for all the conformists who get their 3-4 injections per year.

  3. As for Astrazeneca side effects. Mild headache on day 2, but could also be hayfever or being woken up early by the baby. So meh. Relented and took 2 Panadol. Feel ok again. Just gonna go to bed early. Hope that’s as bad as it gets.

  4. Hugh PavletichMEMBER

    New Zealand housing … build costs out of control on top of housing hyperinflation …

    Housing: New builds ‘absolutely not’ recommended for first-home buyers … Phil Pennington … Radio New Zealand / Newshub

    … extract …

    … Lucy McPherson, 25, and her partner Ben Butterick signed up in July for a $545,000 build yet to begin in Selwyn near Christchurch.

    They thought by going rural they had got a good deal on a four-bedroom house-and-land package.

    But already the price has risen by $7000 – and the sleepless nights have kicked in. …

    … “I just can’t imagine having to finish your first home, and then turn around and pay back not only extra costs that you didn’t know were going to pop up, but also that HomeStart grant which is such a big help to first-time buyers like ourselves,” she said.

    Their bank had pre-approved up to $550,000 – but was “strongly, strongly” advising them not to go ahead.

    “They gave us the very stern warning that they have seen many cases like this, that have spiraled out of control”, cases where cost over-runs had hit $60,000-plus, McPherson said.

    A mortgage broker told RNZ about two similar-sized over-runs she had seen recently in Auckland. … read more via hyperlink above …

    Annual Demographia International Housing Affordability Survey – All 17 Editions

    Median Multiples – Interest Co NZ

    Home affairs: New Zealanders forced to turn to dating sites to find a mortgage mate … Tess McClure … The Guardian
    … h/t PH …

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