Macro Afternoon

See the latest Australian dollar analysis here:

Macro Morning

Stocks continue to pull back across the region as rising concerns over inflation and COVID related economic slowdowns leading up to tonights US CPI print create a cautious mood. The USD remains strong against most of the risk currencies, with gold hovering just above the $1760USD per ounce level. Meanwhile Bitcoin continues its little pause here just above the $56K level, as it was ready to barrel in on its previous record high towards the $60K level but resistance is too tough in the short term:

The Shanghai Composite was down nearly 0.4% before the lunch break but is now back to scratch settings at 3551 points while the Hang Seng Index has closed due to a typhoon warning. Meanwhile Japanese markets cannot get back into forward gear with the Nikkei 225 closing 0.2% lower to 28172 points as the USDJPY pair stabilises just below the mid 113 level after short term  momentum was pushing through extreme overbought levels at the start of the week:

Australian stocks were again the best performers, but still went backwards with the ASX200 remaining under the 7300 point level to close 0.1% lower at 7272 points while the Australian dollar is pulling back again after failing to push through the 74 handle overnight as commodity prices retrace:

Eurostoxx and S&P futures are going nowhere as the poor start to the trading week continues into the second half, with the four hourly chart of the S&P500 showing price hovering just above ATR support at 4330 points with the next stage of support at below 4300 points very close by:

The economic calendar is relatively quiet until we get the double whammy German and US CPI prints.

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Comments

    • I think one of the few things the ordinary person can do is to recklessly use water. I grew up in the 80s drought in regional Australia so it seems crazy to waste water but this is what we need to do. Mass action by the punters is the only way to stop population growth – we need to force the city to run out of water!

      Run ‘Dem Taps!!

      • Mr Kuestenmacher claimed that as most skilled migrants were young, single people who lived in small dwellings, “even a large migration intake wouldn’t even have a massive impact on the housing market in terms of the need for new dwellings”.

        The big issue, he said, was infrastructure.

        “The good news is the federal budget really doubled down on infrastructure growth, so they’re willing to spend an awful lot of money on infrastructure,” he said.

        “The problem is … all industries complain about the lack of skilled workers. So we do actually need migration to actually build all the infrastructure things we are willing to pay for.”

        So you don’t need many new dwellings if you bring in a lot of young single people – they will live in small dwellings.
        Do these young single people have johnsons or beavers? Do they have natural instincts? Do they have plans for a better life? Do they have any dreams?

        Will they live indefinitely in these small dwellings, single, getting older and happily producing all the infrastructure our society and economy needs?

        • Jumping jack flash

          They’re slaves, therefore not real people. They will be able to live happily in a cardboard box if that’s the narrative required to justify their agenda.

          They are here for a purpose and maybe that’s to buy houses, but i really struggle to understand how an uber eats driver or a kitchen hand or fruit picker is going to become eligible for a million debt dollars to buy a starter house.

          It is much more likely they are here to steal wages from to make their masters eligible for more debt.

        • The bullshido spouted by these people is laughably dimwitted. “It’s fine to bring in moar immigrants, as long as we provide adequate housing and infrastructure, which is…you know…something that has never been done before.” Etc etc…

      • Mining BoganMEMBER

        The article even shows that Perrier bloke’s hypocrisy. And look at the poll results.

        I’m wondering if he’s being set up for a fall so Scummo can swoop in and say yeah nah, the folk don’t like it…I’ll save you from the unwashed hordes. After an election saving switch on climate change anything could happen.

        • I was wondering that – if only cos whatever idea the poms have, however sh!t, we follow along dutifully. And they (seem to be, say that they are) are shutting teh gates.

        • I think he will blow it all up for Scummo.
          Scummo knows this stuff is toxic and so does it quietly with lots of spin and plausable deniability.
          This guy is too upfront with it all. Too blatant.

          • The Traveling Wilbur 🙉🙈🙊

            Yep. Scummo the master tactician and marketing campaigner. Cough.

            I’m sure that’ll come in handy for Australia during the next federal election campaign.
            And bushfire.

    • Exploitation is not a feature in mainstream orthodox economics … just like fraud and corruption ….Jebus weeps for profit ….

    • That insane plan was “top-secret, politically sensitive” for one reason. They knew that not a single person in the country other than themselves would think it’s a good idea.

      Bringing in 400K+ immigrants a year might just be enough to start some unrest.

      • Jumping jack flash

        The trouble is there’s enough people around who think its a great idea.

        For instance I’ve been asking my wife to hire some fresh immigrants for a while, pay them a pittance as subbies or casuals and jack up all her prices to boot. Its the Australian way!

        She is coming around to the idea, mainly because she has so many clients now she can’t keep up, and the hours are getting too long. “Work smarter, not harder, hire an immigrant today” the tagline almost writes itself.

      • Exactly, it is too blatant, too extreme.
        Little Johnny Howard knew you needed bait and switch, plausable deniability, lots of spin… Scummo knows too.
        Perrotet will blow it up for all of them.

  1. The Traveling Wilbur 🙉🙈🙊

    HODL like it’s the last time you’ll ever put away a $50.00 note for ‘safe-keeping’.

    HODL.

  2. Hugh PavletichMEMBER

    China … Developers debt and accountability …

    OPINION China’s new corruption investigation could exacerbate property crisis … Stephen Bartholomeusz … Sydney Morning Herald
    … google search title if blocked …

    https://www.smh.com.au/business/banking-and-finance/china-s-new-corruption-investigation-could-exacerbate-property-crisis-20211013-p58zln.html

    Earlier this week China’s corruption watchdog launched an investigation into 25 of the country’s biggest financial institutions and their regulators. On past experience that could have convulsive consequences.

    On Monday, the Central Commission for Discipline Inspection began a two-month audit of a number of big state-owned banks, insurers, China’s bad-debt managers, the People’s Bank of China, the China Banking and Insurances Regulatory Commission, China’s sovereign wealth fund and securities regulators and exchanges. … read more via hyperlink above …

    Festering Evergrande contagion worries push China spreads to record … Andrew Galbraith … Reuters

    https://www.reuters.com/world/china/china-developers-bonds-shares-hit-again-by-evergrande-contagion-worries-2021-10-13/

    In China, Home Buyers Who Went All In Say They Want Out … Alexandra Stevenson and Joy Dong … New York Times

    https://www.nytimes.com/2021/10/12/business/evergrande-homebuyers-debt-china.html

    China Developers Account for About Half of World’s Troubled Debt … Shannon D Harrington and Claire Boston … Bloomberg

    https://www.bloomberg.com/news/articles/2021-10-13/china-developers-account-for-about-half-of-world-s-troubled-debt