Macro Afternoon

See the latest Australian dollar analysis here:

Macro Morning

Its another sea of red out there for Asian stocks as we start the new trading week in the shadow of big falls on European and US share markets on Friday night as the latest US jobs report solidifies the Fed’s stance on hiking rates. All the major currency pairs continue to fall with the Australian dollar just crossing below the 70 handle while oil markets are stable, gold prices continue to falter during the Asian session, currently down to $1870USD per ounce. Bitcoin did even worse, losing over 5% to cross below the $34K level, making a new monthly low:

Mainland Chinese share markets are treading water with the Shanghai Composite currently putting in a scratch session at 3001 points while the Hang Seng Index is closed for the National Day holiday. Japanese stock markets have played catchup on risk aversion with the Nikkei closing 2.5% lower at 26319 points while the USDJPY pair has lifted again matching the previous weekly high, currently above the 131 level:

Australian stocks could not escape the risk aversion either with the ASX200 down more than 1.2% to close at 7120 points. Meanwhile the Australian dollar is also making new weekly and monthly lows, cracking through the 70 handle:

Eurostoxx and Wall Street futures are still on the floor after Friday night’s performance with the S&P500 four hourly chart showing price wanting to return to the start of last week’s low just below the 4100 point level as the 4000 point terminus looms:

The economic calendar starts the new trading week quietly with a few BOE and Fed speeches plus some Treasury auctions.

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Comments

    • The Travelling PhantomMEMBER

      That’s why I only eat meat I butcher myself.
      Don’t trust and don’t want to support any of those big companies.. plus I heard that the worst employers of foreign undocumented immigrants are the abattoirs

      • LeMon3MEMBER

        My local abattoir is owned by the Japanese. Biggest employer in the town, barely an immigrant to be seen, except for the guy that supervises the halal kills and the occasional visiting owner.
        Likewise, the abattoir we used to take our pigs to (a couple of hours up the highway) is a family owned operation that, again, employs locals and was really good in the way they handled the animals.
        Then again, JBS sells to Coles and Woolworths. What else can you expect, but a race to the bottom? C#nts like that just love to deal with other c#nts.
        Far as I’m concerned, there just aren’t enough lampposts for them all…

          • ErmingtonPlumbingMEMBER

            I used to subbie to another plumber who did a lot of maintenance at this filthy Abattoir past Wilberforce in the northern reaches of the Sydney basin.
            I worked there with him several times and the place looked like it hadn’t been refitted since the 1950s
            We never worked there whilst slaughtering was going on and only went in after “clean up”.
            This was before Covid and I remember being told that the old Aussie owner was thinking of shutting the place down as he didn’t want to recapitalise to get the place up to scratch.
            But in came this investor (Bangladeshi I think if memory serves correct) who bought into the business, took over day to day management and was, apparently, in the process of replacing the long serving local labour with Foreign worker’s to make the place more profitable.
            That was at least 3 or 4 years ago and I often wonder what has become of the place.

          • The Travelling PhantomMEMBER

            @Ermo yea… I bet all workers are on temporary visas and anyone complains off they go. I can’t and don’t want to imagine how they treat the animals though

        • Grand Funk RailroadMEMBER

          +1 They import Chinese people down in Warrnambool, auctioning off the right to get an Australian employment visa and then exploiting the living daylight out of them once they are here. An utter disgrace!

          Glad to hear there are still outfits employing locals

          • The Travelling PhantomMEMBER

            Those abattoirs in western Melbourne were covid ground zero too.

        • ErmingtonPlumbingMEMBER

          Long and thin gets it in,…but short and thick does the trick.

          But poor old Harry got stuck with short and thin.
          So no discernible advantage for him at all in that region.
          Though I have been told by Reusa that he has enormous balls and an impressive looking ball bag ,…but what are big ball bags really good for?
          Do chicks or homos even like them or are they just as repulsed by them as sound hetro plumbers?

          • I’ve got 12 inches but I don’t use it as a rule.
            ps what do you mean by “got stuck with”

  1. Yes, sea of read, Beijing quite and Putin talking, says Russians fighting on their own land, more red tomorrow?

    Will there be an “event” during parade?

  2. RobotSenseiMEMBER

    Coalition back out to $3.20, you can bet there’ll be some emotional hedging going on which I’ll then reinvest into… Pokemon cards or Lego.

  3. Very busy at the local pre-poll booth around the corner today. Antony Green was suggesting today that only 50% of votes would be cast on Election Day itself.

      • The Travelling PhantomMEMBER

        Sent mine last week, i think scomo picked the latest possible date, so people have to endure 6 weeks of this sham of campaign and might vote to keep him.
        I bet people want to be done with it 2 weeks ago

    • GramusMEMBER

      In the old days (before prepoll was a big thing) a big line when the polls opened was a sure sign of a big swing. A busy pre-poll on day 1 might be the modern day equivalent.

      • Expect many a knee jerk as a bunch of silly stuff [crypto et al] unwinds, blow back from sanctions, and miss-allocation of capital, etc does the worm dance …

        • GingerMEMBER

          Venture an opinion on where it’s going and the route? What role for MMT? If we accept MMT as current (denied) reality, why would the future be any different?

          • MMT has no innate agency Ginger, albeit as Hudson has noted with the IMF SDR’s that loans will be given out for the compliant [neoliberal privatization] and then used to prop up BSD Atlantic investors during the storm.

            Then again –

            Brazil’s Lula proposes creating Latin American currency to ‘be freed of US dollar’ dependency

            Brazil’s left-wing leader Lula da Silva has proposed creating a pan-Latin American currency, in order to “be freed of the dollar.”

            A founder of Brazil’s Workers’ Party, Lula served as president for two terms, from 2003 to 2011. He is now the leading candidate as Brazil’s October 2022 presidential elections approach.

            https://multipolarista.com/2022/05/04/brazil-lula-latin-america-currency-us-dollar/

            MMT has always been a description of functionality first and foremost and not some ideological based notion. The point being is the framework for policy debate over what the Government can and cannot do rather than the endless sell of neoliberal privatization and individual choices after the market determines distribution. You’ll notice there was zero friction in passing 33B for the Ukraine thingy after around a solid 1T for Afghanistan et al. Whack let it rip covid on top of all it.

            I thought Pilkingtons NC post on IR a decent argument contra the orthodoxy trotted out for so many decades.

            I would add that China is still developing trade with Africa and South America, so the States don’t and most likely won’t hold the same significance moving forward. I think this fits the inverted totalitarianism theory since Atlantic globalization meets increasing failures, doubles down, and creates its own doom loop.

    • Same as was the problems for Greece back in the day … Elites administering things to favor them and theirs first and foremost e.g. when a small percentage of the population has the ownership/property rights to everything. Now their ripe for an IMF which will bail out the Elites whilst the rest of the population is fracked and then told they can’t do anything because of markets and contracts.

  4. The Juice Media
    We’ve been getting lots of questions about how to vote and make your vote count for climate at this election and there’s no way we can answer them individually, so we made a video. Thanks to @EllenBurbidge for joining me for this one! #auspol #ausvotes https://t.co/0H1irHJGfy

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