Macro Afternoon

By in Australian Dollar, Australian Shares

| 73 comments

See the latest Australian dollar analysis here:

Macro Afternoon

Hope and fear remain in equal parts across risk markets with Asian stock markets reflected of the divergent fortunes in overnight markets, although it seems Europe will start with a slip as Eurostoxx futures are lower. USD remains strong against all the majors except safe haven buying in Yen while the Australian dollar is back to its depressed mood, flirting with the 71 cent level once more. Bitcoin is equally depressed, still hovering just below the $57K level as it fails to make any new session highs while gold is failing to pick itself off the floor, remaining below short term support at the $1780USD per ounce level and setting up for further downside:

Chinese shares are still somewhat listless despite a previous solid session with the Shanghai Composite largely unchanged at 3574 points while the Hang Seng Index has continued its rebound with a 0.4% lift higher to 23765 points. Japanese markets however have failed to stabilise with the Nikkei 225 closing 0.6% lower at 27753 points with the USDJPY pair unable to get out of its downtrend channel, barely hovering above the 113 level and nowhere near out of trouble:

Australian stocks had another mild selloff with the ASX200 closing 0.1% lower at 7225 points as the Australian dollar failed to recover from its overnight move down to the 71 handle as the nascent short term bottom pattern on the four hourly chart evaporates:

Eurostoxx futures are down while S&P futures are struggling to gain ground here after the large falls overnight, with the S&P500 four hourly chart showing price barely hovering above the key 4500 point level as trailing ATR resistance at the 4670 point level remains a long way away:

The economic calendar includes the latest ECB general council meeting, followed by Eurowide unemployment then US initial jobless claims.

Latest posts by Chris Becker (see all)

Comments

    • Muttafukaburrasaurus.MEMBER

      The journo is surely in line for a walkely

      “Lifestyle Reporter
      Hannah got her start in journalism writing for newspapers The Armidale Express and The Daily Advertiser, covering everything from cattle sales to psychic pigs. After her stint in regional journalism, Hannah returned to Sydney and followed her passion for reality TV by writing entertainment stories for Daily Mail Australia. While obsessed with all things to do with Married At First Sight and The Bachelor, she is still on the lookout for her next big yarn involving a farm animal with ESP.”

    • The Traveling Wilbur 🙉🙈🙊

      Personally, I welcome our new overlords on whom we will all soon be compulsorily drug-dependent and the multi-party politics via which the pricks will be enabled.

      Go long pharma.

  10. Hugh PavletichMEMBER

    Covid … Will the highly transmissible and less severe Omicron variant rapidly transform and tame the pandemic ? …

    … Where is the modelling of its transmissibility ? …

    Covid: South Africa new cases double in 24 hours as Omicron spreads … BBC

    https://www.bbc.com/news/world-africa-59503517

    The new coronavirus variant Omicron has now become dominant in South Africa and is driving a sharp increase in new infections, health officials say.

    Some 11,500 new Covid infections were registered in the latest daily figures.

    That is a sharp rise on the 8,500 cases confirmed the previous day.

    By contrast, daily infections were averaging between 200 and 300 in mid-November, a top South African scientist told the BBC. … read more via hyperlink above …

    Omicron may cause more Covid reinfections, say South African experts … The Guardian

    https://www.theguardian.com/global-development/2021/dec/02/omicron-may-cause-more-covid-reinfections-say-south-african-experts

    Stock market news live updates: Wall Street shrugs off second Omicron case, Dow soars over 600 points … Yahoo Finance

    https://finance.yahoo.com/news/stock-market-news-live-updates-december-2-2021-234242984.html

    JPMorgan Strategist Says Buy the Dip as Omicron May Accelerate Pandemic’s End … Bloomberg

    https://www.bloomberg.com/news/articles/2021-12-02/jpmorgan-says-buy-the-dip-as-omicron-may-signal-pandemic-ending?srnd=premium-asia

    … concluding …

    … Kolanovic, who became JPMorgan’s chief global markets strategist earlier this year, has advocated reopening trades and defended value stocks as the pandemic has evolved. He has also argued that markets overreacted to the threat of the delta variant.

    It would fit with historical patterns for a less severe and more transmissible virus to quickly crowd out more severe variants, which could turn omicron into a catalyst to transform a deadly pandemic into something more akin to seasonal flu, the JPMorgan strategists wrote in the Wednesday note.

    “If that scenario were to happen, instead of skipping two letters and naming it omicron, the WHO could have skipped all the way to omega,” — the last letter of the Greek alphabet — the strategists said.