Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asian stock markets are finishing the trading week in poor spirits following the selloff in tech stocks overnight on Wall Street, with all markets losing 1% or more. The USD remains under pressure against everything with Bitcoin rolling over through the $43K level while gold has held on to and advanced from its previous breakout, currently right on last week’s intrasession high just below the $1830USD per ounce level, as buying support builds:

Mainland Chinese shares are pulling back again going into the close with the Shanghai Composite down 0.6% to 3534 points while the Hang Seng Index is turning its recent pause into a selloff, down 1% to be just above the 24000 point level. Japanese markets are also selling off in response to some big Yen appreciation with the Nikkei 225 closing 1.1% lower at 28151 points as the USDJPY pair pushes straight through the 114 level for a new monthly low:

Australian stocks are down swiftly in response to the slump on Wall Street with the ASX200 about to close 1% lower at just below the 7400 point level while the Australian dollar is firming here after a consolidation period overnight, getting ready to threaten the 73 handle:

Eurostoxx and Wall Street futures are still quite depressed going into the London open, with the S&P500 four hourly chart showing price hovering at the previous stopping off point before the start of week dip, so we could see a repeat later tonight and a return to the 4600 point level:

The economic calendar finishes the week with UK and German GDP prints, then the latest US retail sales numbers and the Michigan consumer sentiment survey.

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Comments

  1. Still no word from Alex Hawke – I assume that he’s going to wait until the Courts are closed before signing the deportation order.

  2. Mining BoganMEMBER

    Here you go fellow nerds, there may be a chance this weekend.

    “SUBJ: SWS AURORA WATCH
    ISSUED AT 0001 UT ON 14 Jan 2022 by Space Weather Services
    FROM THE AUSTRALIAN SPACE FORECAST CENTRE

    A Southern coronal hole with extensions into the equatorial region is
    expected to reach geoeffective location on the solar disk on late UT
    day 15 January. As a result, unsettled to active conditions with a
    chance of minor storms are possible on UT day 15 and 16 January.
    Aurora may be visible from Tasmania and coastline of Victoria on the
    local night of 15 January. Aurora alerts will follow if significant
    geomagnetic activity actually occurs.”

    • The Travelling PhantomMEMBER

      Not going down to Flinders tonight :/
      It always happens when I’m not there!

      • Mining BoganMEMBER

        I was supposed to be down there sat and sun night but a poorly dog means I have to drive down sun morn, run a 28k trail race then dash back home straight after.

        I’m quite disappointed.

    • There is a lot of focus, rightfully, on the china housing debt and leverage. But given how poor quality some of the housing and infrastructure that has been built in recently years is, there is still a ‘timebomb’ associated with needing to repair or knockdown huge amounts of assets. The Evergrand issue was huge for all the out-of-pocket buyers, but i suspect a far greater magnitude of folk have been exposed to rubbish buildings who risk losing their investments.
      Ditto Australia.

      • Agree, how many flogged off half the cement before mixing the concrete.
        We have first world standards, of course, no dodgy sh!t here.

        • Arthur Schopenhauer

          Yeah, all those Aluminum and Glass facades are rigorously checked for compliance when the containers come off the ship…

      • Absolutely. A huge amount of mortgage debt plowed into these dodgy buildings. Chances are they are knocked down before the mortgage is paid down. All that money invested goes Pffft. Can’t even pass it on to the kid.

    • Luckily for Reusa “earning utility-like returns” on property is not something he has to worry about in the lucky country.

  3. Book worth reading is “Why Australia Prospered” – Ian McClean.

    McLean argued Australia became and remained wealthy largely because it had sophisticated well designed governance structures which were able to respond to shocks. eg. It was born a modern state without the pre-modern divisions.

    The standard journalism righty cliche – Australia was Bangladesh until Keating came along and unleashed market forces – turns out to be completely wrong.
    It is the governance structures stupid.

    Which brings me back to covid and Sco Mo.
    thanks to journalism we are now destined to Become a failed State.
    Journalism has completely destroyed the Federation and its ability to respond to shocks.

    In no other high income country would you have PCR tests being taken and then discarded 8 days later because they are “no longer suitable” with a recommendation to take a rat test. Penny smart pound idiotic ministers failing to get vaccine stocks. Or rat test manufacturers contracted to export before domestic needs are filled shutting off the domestic supply chain for other industries. Farmers destroying food (like Kulaks) because it can’t be brought to market. Braindead anti vaxxers given space in parliament and the media. Or a “border force” with no clue of the laws they are supposed to enforce.

    It is a joke and is all down to journalism who elevates incompetent marketing gimmicks like Sco Mo and then spends 2 years trashing highly competent leaders like Dan Andrews and Shorten. We are becoming a failed state. Which is probably what the anti vaxxers and KFC food court freedom warriors want.

  4. boomengineeringMEMBER

    Just got out from spearing this arvo, seasick from bad Bluewater Cafe meal beforehand .Didn’t spew though. Son got followed around by that 450mm undersized Kingie again.

  5. TailorTrashMEMBER

    Last night I watched Martin Scorsese’s The Irishman ……
    ..about how Jimmy Hoffa and The Mafia plundered the truckers of America’s pension funds ………..thinking of all those straya super billions we think is still there ……..we hope ……

    • The Traveling Wilbur 🙉🙈🙊

      I’m sure the RC sorted everything…

      I have a Six Sense about these things and will let you know if they bill dead people.

  6. From cricinfo (BBM):

    8.11pm: 130 runs in the session for the loss of a single wicket in 28 overs. Travis Head became the first men’s Ashes centurion at Hobart, making a superb counter-attacking 101, but fell a ball later to Woakes as England finally broke his stand with Cameron Green. England have struggled to build any pressure with Robinson bowling a solitary over in the session due to stiffness in his lower ball, and Root required to bowl 10 overs in the first two sessions on a bright green pitch. Gnasher will be back in 15 or so to talk you through the start of the night-time session.

    Man I hate that, understand completely. Also makes it difficult to sit.

  7. Arthur Schopenhauer

    Maybe we could co-op’t the Danish Royals. They are more attractive. And our Queen would be a former Real Estate agent!

  8. Bought a 65″ tele, HiSense so everything I do is being tracked, but watching the cricket in HD is so, so beautiful.

  9. Google entry…”Why is Australia so…”….suggested search responses:

    Hot
    Dry
    Good
    Diverse
    Expensive
    Flat
    Urbanised
    Rich
    Liveable
    …….

    Google entry…”Why can’t Australia…”….suggested search responses:

    Make urea
    Produce adblue
    Make adblue
    Have hamsters
    Use nuclear power
    See polaris
    Citizens leave Australia
    Produce urea
    Manufacture urea
    Get the Pfizer vaccine

    Could go on all night

  10. Serious c0 ck up! Since when were occurrences of one in twenty or one in six considered statistical rarities?

    US man claims his p3n!s has shrunk due to rare Covid side effect

    https://www.news.com.au/lifestyle/health/health-problems/us-man-claims-his-p3n!s-has-shrunk-due-to-rare-covid-side-effect/news-story/4bb179721b4c4fe85888fbb36f6248a5 (correct the p-word spelling in the link)

    University College London conducted a study into long Covid symptoms, identifying 203 symptoms in patients from 56 countries.

    Almost 5 per cent of men suffered a “decrease in size of t3st!cles/p3n!s”, according to the findings which were published in the Lancet’s EClinicalMedicine.

    Around 15 per cent of men reported s 3 x u a ! dysfunction.

    • The Traveling Wilbur 🙉🙈🙊

      Well, I’m sure if mine had shrunk by an inch that I would have noticed by now.

      Edit: oh, that’s 5% of, not by 5%. My bad.