Macro Afternoon

See the latest Australian dollar analysis here:

Australian dollar free falls as Fed hikes return

Asian stock markets are having a big bounce across the region in response to a nearly equally strong bounce on both European markets and Wall Street overnight, possibly due to the PBOC stimulus measures as other catalysts are wanting.Β  Gold remains in the doldrums, holding on to the $1780USD per ounce level, not making any new session highs while Bitcoin is rebounding from its previous slump, with a bounce that has now cleared the $51K level, but its a long way to go if you want a sausage roll:

Mainland Chinese shares were the odd market out with the Shanghai Composite basically unchanged going into the close, currently just below the 3600 point level while the Hang Seng Index has bounced up strongly, nearly by 2% to be at 23744 points. Japanese markets are doing even better with the Nikkei 225 closing more than 2% higher at 28506 points with the USDJPY pair continuing its move higher, extending well above the 113 level:

Australian stocks didn’t escape the party with the ASX200 lifting 1% to close at 7313 points as the Australian dollar continued its push above the 70 handle, negating the big selloff on Friday night but still under tremendous pressure post the RBA hold:

Eurostoxx futures and S&P futures are lifting again going into the London open, with the S&P500 four hourly chart showing prices wanting to continue its breakout above the week long downtrend line as buying support starts to build here above the key 4500 point level:

The economic calendar includes the closely watched German ZEW survey, then Canadian balance of trade figures.

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Comments

  1. Mining BoganMEMBER

    So, we’ve got three WuFlu cases at work. Two of them did the right thing, felt crook, got tested, Bob’s your uncle, time off for the first test. Winning. Except for the unvaxxed one in hospital. That’s unfortunate but I’m sure they will gave a telly in the ward. The third however…

    Anti-vaxxer. Anti-everything really. Except China. Loves China. An enthusiastic protestor. He got the WuFlu. Didn’t tell anyone directly but made jokes about working next to Covid. Apparently he knew last Wednesday and came to work every day until yesterday when he looked like he was going to cark it. Got sent home then sent in a fake negative result form ten minutes later. Boss says f#ck off, do it properly.

    Place is in uproar. Great violence is being promised. Two thirds of the staff stamped their feet, said this is bullsh!t and walked out…although some got a rapid test and were back in half an hour.

    So, we don’t know why he’s done it. Prove a point, deliberately spread it, a form of protest? It’s just odd.

    • The Traveling Wilbur πŸ™‰πŸ™ˆπŸ™Š

      If you do go all Wang Chung, can you please keep track of how many tissue-boxes you go through though?

      Asking for a friend.

      • Mining BoganMEMBER

        The only bright side is if I did catch it i may wipe out an entire tribe of Bill Heslops down Portsea way.

      • reusachtigeMEMBER

        Yeah I can only imagine how much more I’d have to take care of myself if I was stuck at home!

    • That just infuriates me.
      My tolerance for these people cannot possibly get any lower. And it is the employer who is on the hook if another employee catches it and brings a claim. Just sack them for misconduct and instantly boost the avg. intelligence and productivity of the organisation – then cut off benefits until they get vaccinated. Can’t see why society needs to allow this.

      • The Travelling PhantomMEMBER

        You remind me with the old sultan in big sahara who ordered to castrate anyone pi$$ in public streets..
        Few years later they ran out of gold as no workers around paying tax , all at home recovering! So had to open the immigration flood gates and to lower teh rates
        hoping that’ll fix everything

      • Ample grounds to sack em. If not, refer to police and sue for reduced productivity at work. And manslaughter if anyone got sick enough to croak.

        • If they came to work under the influence caused an accident there would be a potential manslaughter case. What’s the difference except here the accident is contagious so could potentially effect a large part of the workforce.

      • Before all this covid-safe nonsense we could all agree that any decent person knows to stay home if they are feeling sick and have symptoms of a contagious nature.

        However with covid-safe policies now in force, I don’t see why Sweeper considers it such a big deal.

        If the other employees were wearing masks and fully vaccinated, then surely they would have nothing to fear from this unvaxxed sicko! Unless Sweeper believes the vaccines are ineffective and masks are a waste of time. Sweeper = anti-vaxxer ??

    • “Two thirds of the staff stamped their feet, said this is bullsh!t and walked out”

      And this is why not having mandates is so stupid.
      As an employer your choice is to lose 5% of your workforce who don’t have a brain or ethics or care about colleagues and customers (and probably clog up the work fridge with fast food) and are probably lazy.
      Or lose up to 95% of your workforce who have a brain and ethics and care about their colleagues and customers.

    • Bloke should be sacked for his own protection. Hard to see how he can show his face at that workplace again.

    • get him fired. I am vaxed but I am against mandates and am very sure current vaccines are not safe or good enough. I know better vaccines will come out in the next 12 – 24 months..
      Anyone behaving like that should be fired. Simple as that.

    • I hate to wish badly of anyone, but… I hope he gets very sick and has time to think about what he’s done. I don’t want him to die, but Covid long would be a suitable punishment.

  2. SnappedUpSavvyMEMBER

    Zhao Lijian the wolf wanker master of Double Speak says: β€œno one would care if officials from countries including Australia decide to boycott the Beijing Olympics.”

    Then in the next breath: β€œIf the US is bent on having its own way, China will take resolute countermeasures.”

  3. The Traveling Wilbur πŸ™‰πŸ™ˆπŸ™Š

    Give me Head every day of the week.

    Khawaja must have been surprised, he was dropped so early.
    I certainly was.

  4. a guy on twitter is calling to choke Russia with sanctions and destroy them totally (whch in my view will cause them to start a war as nothing else is left for them as an option) and is allowed to do that while I got suspended (probably for life) because I called restards all those who are trying to start WW3. Suspended for violence and threatening.. lol

    • The Travelling PhantomMEMBER

      breaks my heart no “Member” beside your name, as a veteran they should give you one for life…but alas capitalism and profits FKN

    • The Traveling Wilbur πŸ™‰πŸ™ˆπŸ™Š

      The only reason that the politically-suicidal idea of running Gladys for Federal politics is even conceivable to the Libs is because John Clarke is no longer with us.

      Only he could out-satire this cluster-fluck with intentional satire. And in under 10-minutes. May he RIP.

    • Like bad driving, when voter makes a bad call about a politician’s honesty, they ought to incur 3 points and if it rises to 12 points within an election cycle they lose the right to vote for one election.

    • Anders Andersen

      That just reminded me why I fkg hate that pice of sh!t. Like Howard and most of the LNP when he dies I’ll be celebrating, their deaths can’t come soon enough.

    • I got kicked off Twitter for wishing him dead. A badge of honour.

      They tell me that if I recant and delete my tweet I can tweet again. FCK THEM. They don’t own me. I still wish him dead and they can go fck themselves.

      • ErmingtonPlumbingMEMBER

        I got a 12 hr ban for saying someone should slap that guy and posting it with a penguin slapping another penguin on the back of the head.
        It was instant. An Algorithm moderation

        • The Traveling Wilbur πŸ™‰πŸ™ˆπŸ™Š

          If you’re going to slap your penguin, it’s best to do it in private.

    • FMD, why wasn’t I told? I have 5 rabbit rifles, for ranges from 30m to 400m and I didn’t get an invite. When I’m unemployed next year I’m going to take up pest control for a living.

  5. Hugh PavletichMEMBER

    The Ugly Truth About Market Bubbles Is That Everyone Loses … Kevin Muir OPINION … Bloomberg

    https://www.bloomberg.com/opinion/articles/2021-12-07/stock-market-the-ugly-truth-about-bubbles-is-everyone-loses

    I was chatting a few days ago with one of the smartest hedge fund managers I know. We were talking about the recent carnage in unprofitable tech β€œdream” stocks, and he reminded me of a time many have forgotten. β€œFrom 1995 to 2000, I watched some of the shrewdest managers get annihilated shorting the dot-com bubble,” he said. β€œBy the end, they all went out of business. I then watched the next five years destroy all the long managers who had ridden the euphoria to the upside, until most of the aggressive ones were also sent packing.”

    In hindsight, bubbles always seem obvious and easy to trade. As someone who has experienced more of these than I care to remember, I assure you they are not. Take the mid-2000s real estate episode. With movies such as the β€œBig Short,” and glowing newspaper articles about hedge fund managers who made fortunes profiting from the real estate collapse, it seems like opportunity was everywhere.

    What we forget is that these trades were successful because so few believed they could happen. I can’t tell you the number of times a young trader tells me, β€œI wish I had been around back then, β€˜cause I would have made a killing!” What they don’t understand is that, in the moment, bubbles are extremely difficult to identify. They are even tougher to trade.

    I’ll never forget trying to take advantage of the real estate mania in 2005. I thought the sector was wildly overpriced. That February, when it appeared the homebuilders had topped and started to roll over, I shorted a basket of homebuilder stocks. The trade worked until April. Then, much to the surprise of the bears, homebuilder shares ripped higher by 35% in the space of two months, and I got shaken out of my short positions.

    A Trade Works Until It Doesn’t … read more via hyperlink above …