Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

A somewhat solid start to risk taking here in Asia as we start another trading week with stock markets not reacting to the falls on Wall Street on Friday night, while the USD remains relatively strong against risk currencies despite some lifts in commodities. Gold is struggling to get back above the $1800USD level, while Bitcoin is weakening again following weekend trade with a drop below the $45K level, having found no support:

The Shanghai Composite is putting in a solid finish, remaining above the 3700 point level, up 0.3% to 3715  points while the Hang Seng Index has fallen completey out of bed, taking back all of its Friday gains and then some, off by more than 2% to finish at 25659 points. Japanese stocks continued their epic runup though with the Nikkei 225 finishing 0.2% higher to 30447 points, helped by a much weaker Yen as the USDJPY pair gaps higher after the weekend:

Australian stocks were able to stave off another selloff with the ASX200 eventually finishing 0.25% higher at 7425 points while the Australian dollar failed to find support and broke below the 74 handle, continuing its selloff from Friday night:

Eurostoxx futures are flat while S&P futures are coming back sharply as we head into the London open, with the four hourly chart of the S&P500 showing price wanting to recover its deep dive on Friday night as it broke well below the 4500 point level. Wait for the BTFD crowd to step in soon:

The economic calendar  is pretty empty tonight, as Tuesday will be the big one with UK unemployment and US inflation to dominate.

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    • The Traveling Wilbur

      Yeah. Nah. All out of date since the invention of Netflix.

      Riot control in 2042: “Back in your houselets NOW! Or we release the extra large robot dogs AND we’ll double your LGA’s Netflix subscription costs again.”.

      COVID control in 2022: Subscription free periods – government subsidised.

    • Standard penalty for this should be to revoke visa and/or citizenship of slave driving immigrant business owners but sadly is standard operating procedure in our v1brant economy

  1. Let’s say the DLS doomer predictions come true and the AUD suffers a sustained fall into the (say) low 60’s. In this scenario I’m thinking this is the result of much much lower iron prices and negative-ish interest rates. What might this mean for our banks?

    • Mining BoganMEMBER

      Being ill at home will become an underlying condition. He would’ve died with WuFlu, not from it.

      It would’ve been the being ill at home wot killed him.

    • C'est de la folieMEMBER

      Don’t be so crazy man!

      Any idiot knows that if coughing blood – for no apparent reason – a sliver of lemon and a Campari and Soda is best, unless you have malaria in which case a Bombay and Tonic (also with lemon) is the way to go……

      If you are coughing blood because of a bayonette wound to the chest, a tiger mauling, or bull elephant stomping a vodka and lime or even a vodka and pepper can be most efficacious. Any form of tuberculosis leading to the coughing of blood should be treated with two glasses (long) of Galway poteen, though I have seen it treated with Croatian grappa. I am quite reliably informed that coughing blood because of Anaconda constriction can be treated with a good tequila or mescal, and have been told that in the Ottoman world the coughing of blood resulting from a knee to the ubers by an irate girlfriend is traditionally addressed by a good raki.

      Finally I should note that the coughing of blood common after knife fights in many regions of the Balkans sees sljivovica, and the good people of China tell me that the coughing of blood which often results from spending 23 hours in the smoke filled auditorium listening to a glorious leader address is traditionally treated with baiju.

    • “The wife of a Sydney man stricken with Covid-19 has given a harrowing account of how the “hospital at home” program is operating revealing her husband was told to remain at home even when he was coughing up blood.”
      Pfff! Harden up!

      Just kidding. The “F off and die (of covid in your own home)” program is working perfectly. Now open teh gates already.

  2. So anyone else get into uranium?
    It’s been pretty mental the past couple of weeks.
    My entire portfolio went up by 33% in the past two trading sessions. A third in two days. Just nuts.
    There’ll be some violent pullbacks at some point and we’re past the smart money stage, but this bull has plenty of legs yet, IMO.

  3. Government deficits have gotten a bad rap, says economist Stephanie Kelton. In this groundbreaking talk, she makes the case to stop looking at government spending as a path towards frightening piles of debt, but rather as a financial contribution to the things that matter — like health care, education, infrastructure and beyond. “We have the resources we need to begin repairing our broken systems,” Kelton says. “But we have to believe it’s possible.”

    • ErmingtonPlumbingMEMBER

      With my turnover being down due to Covid I’ve been getting quite a bit of Govie money lately that “feels” little different (I imagine) to receiving a UBI.
      I’m still available to fix peoples Plumbing issues, when I think the rules allow, and am actively trying to get my turnover back up to normal,….and beyond hopefully.
      But without this Govie Money Id certainly be struggling to meet all my overheads and bills ATM.
      I wonder if like me a lot of people coming outa this pandemic will be more inclined to be supportive of a UBI.
      The above does Sound like a bit of a corporate rebadging of the welfare state to me with out the state ownership of stuff it should own, but still half serfdom is better than full serfdom I suppose.
      I did like that Stephanie Kelton piece you posted Skip.
      Here is another one

      I notice she is formerly a professor at the University of Missouri–Kansas City. That’s where Michael Hudson is/was.
      Maybe she’s an economist that working people can trust to advocate, a bit more than usual, for their interests.
      Or maybe she to will conform,…like most of the rest.
      I mean who wants to have their career Black balled.

  4. Hugh PavletichMEMBER

    China … Evergrande … and too … wider and deepening political tensions …

    … Bloomberg reports (see below) … In the Sept. 1 address to young cadres at the Central Party School, Xi said Communists should “never tremble in the face of danger and never be spineless cowards.” …

    Evergrande investors face 75% hit as company edges closer to restructure … Martin Farrer … The Guardian

    Analysts say massively indebted China property group likely to be dismantled to avoid triggering market-wide panic.

    The troubled Chinese property group Evergrande has edged closer to a government-engineered restructuring which could see bondholders take huge losses as Beijing’s price for saving millions of homeowners from financial ruin. … read more via hyperlink above …

    Evergrande Denies Rumors Of Bankruptcy As Crisis Boils Over, Social Unrest Breaks Out Across China … Zerohedge

    China’s Xi Urges Communist Party ‘Mr. Nice Guys’ to Take Action … Bloomberg

    Chinese President Xi Jinping has urged members of the ruling Communist Party to act more boldly when necessary, in a sign of frustration over the performance of lower-level officials in the country’s top-down political system.

    “For Communists, Mr. Nice Guy is not a really good person,” Xi was quoted in a commentary on Monday in the People’s Daily, the party’s official mouthpiece.

    The commentary said “nice guys” were afraid of offending others and just wanted to protect their own interests, which would in turn hurt the party. “If you are a good person in the face of negative and corrupt phenomena, you cannot be a good person in front of the party and the people,” Xi said recently event at a party training school. “You cannot have both.” …

    … concluding …

    … In the Sept. 1 address to young cadres at the Central Party School, Xi said Communists should “never tremble in the face of danger and never be spineless cowards.”

    China Insights – Youtube
    … h/t PM …

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