Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

More falling share markets here in Asia to finish the trading week, after another bath of blood on Wall Street overnight, following the rate rises from the BOE and SNB. It was the BOJ turn today, but they kept the rudder steady and didn’t join the rate rise party.  The USD remains weak against most of the undollars, with the bounce in the Australian dollar again rolling over at the 70 cent level while Euro has given back some of its big gains overnight. Oil prices are drifting sideways, with Brent crude just above the $119USD per barrel level while gold is failing to follow through on its overnight bounce as its struggles to get off the ropes here at the $1845USD per ounce level:

Mainland Chinese share markets remain volatile with the Shanghai Composite currently up 0.6% to 3305 points while the Hang Seng Index is bouncing back even harder, up more than 1% to 21077 points going into close. Japanese stock markets are not liking the neutral BOJ stance with the Nikkei 225 index about to close 1.5% lower, currently at 26031 points while the USDJPY pair has continued its modest bounce back to be just under the 134 handle:

Australian stocks are not doing well in their final session of the week with the ASX200 looking to finish nearly 2% lower, currently at 6470 points. The Australian dollar hasn’t been able to translate its overnight bounce back above the 70 cent level into more upside here, with four hourly momentum not yet overbought, as I still contend the Pacific Peso is looking very weak here as the RBA is in a pickle (of its own making):

Eurostoxx and Wall Street futures are slowly drifting higher here, trying to lick the overnight wounds that saw bourses on both sides of the Atlantic drop between 3 and 4%. The S&P500 four hourly futures chart shows price action still crushed at the 3700 point level as the May lows (lower horizontal black line) slowly turn into resistance here:

The economic calendar finishes the week with Euro core inflation prints for May, then a speech from Fed Chair Powell to keep an ear on.

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  1. Hugh PavletichMEMBER

    China / Taiwan …

    Taiwan Touts “Ability To Attack Beijing” With Supersonic Cruise Missiles … Zerohedge

    Taiwan officials are now touting that they possess an advanced cruise missile which is capable of hitting locations on the Chinese mainland, which could be launched as a counter-strike in the event of a Chinese military invasion of the island.

    You Si Kun, President of Taiwan’s Legislative Assembly, recently said in a media interview that Taiwan’s military wouldn’t shy away from using its Yun Feng supersonic cruise missiles if under direct invasion threat. “Yung Fend missiles can already hit Beijing, and Taiwan has the ability to attack Beijing,” You said, as cited in Liberty Times Net, and further described in Fox News. Supersonic missiles are capable of traveling faster than Mach 1

    The top official invoked the example of Russia’s rapid, ‘surprise’ invasion of Ukraine – suggesting that military preparedness as well as basic geography would stall a Chinese PLA advance deep into the island. … read more via hyperlink above …

      • Lol it has always been the neoconmen pushing the green agenda for power and money. Al Gore had a massive stake in clipping carbon credits afterall. And don’t get me started on IPCC junkets, you’d think they would teleconference rather than flying private jets if there was actually a real problem.

    • Stephen Morris

      Are generators still paid separately for energy and capacity?

      I was working in the UK in 1988 as the electricity market was being designed. The original system implemented at the time of privatisation required generators to bid separately for:

      a) energy (a relatively low price per GWh of energy produced); and

      b) availability/capacity (a relatively high price per MWh of available generation) paid irrespective of the amount of energy actually generated.

      The two were combined (together with the price for ancillary services such as voltage stabilisation) and averaged over the total GWh generated to create the final price.

      Is this still how it works? Or have the two elements been collapsed into one price per GWh. If so, that would seem to me to be the root of the capacity problem: generators aren’t paid enough for capacity while low-cost energy producers are making excess profits.

      But I’ve been out of that industry for decades now.

      • Since no one else responded:
        I don’t know. My understanding is that there is a spot wholesale price for electricity which changes every minute and the generators can decide to generate and sell at that price or not.

        The system you describe is far more sensible (for the public).

    • The Travelling PhantomMEMBER

      What do you think of the Aussies got sanctions from Russia today, weird combination from Andrew Bolt to Gina to Tony Wright

        • The Travelling PhantomMEMBER

          Ouch! Lol
          If I ever have money and own a TV channel I’ll definitely give you “the tonight show”
          Harry “better homes and gardens”
          Boom “How to DIY things at your home”
          Desmo for “travel guide”
          Bcnich “market wrap”
          Build your own car by Gav and LeMon3
          And other suggestions are welcome!

  2. I feel like a bit of a goose buying beers that cost $12 a stubbie but damn they’re good.

    Finally been hitting the Black Sheep bottleo in Newmarket (Bris), asked about it on here yonks back and can’t remember who replied saying the range was good (was at least 2 of you) but have become a bit of a regular buying all the boutique oz beers, especially the Tassie ones. Real good stuff when you can’t source any bunnamagoo

  3. Mining BoganMEMBER

    Bruz has been given a job in the states. Trade commissioner or something.

    Big taxpayer funded wage and out of sight for the next nsw election.


      • TailorTrashMEMBER

        Sad isn’t it ?…………but I come from a simpler time when social policy was administered a little more stringently …… a robust public service paid a fair salary

        .now it’s largely privatised and hugely enriching a few at the cost of many

        Hope I live to see the day people question why they get hammered for taxes to support this theft………

    • Nah that seems kosher for soccer, just like sliding for a ball in front of someone means they deserve a penalty for pretending to trip. Good to see the Aussies are finally learning!

      • haroldusMEMBER

        The Pig-Iron Song
        a song by Clem Parkinson©1964 Clem Parkinson

        Did you ever stop to wonder why the fellows on the job
        Refer to Robert Menzies by the nickname Pig-Iron Bob?
        It’s a fascinating tale though it happened long ago
        It’s a part of our tradition every worker ought to know

        We wouldn’t load pig-iron for the fascists of Japan
        Despite intimidation we refused to lift the ban
        With democracy at stake the struggle must be won
        We had to beat the menace of the fascist Rising Sun

        It was 1937 and aggressive Japanese
        Attacked the Chinese people tried to bring them to their knees
        Poorly armed and ill equipped the peasants bravely fought
        While Australian water siders rallied round to lend support

        Attorney General Menzies said the ship would have to sail
        “If the men refuse to load it we will throw them into jail”
        But our unity was strong – we were solid to a man
        And we wouldn’t load pig-iron for the fascists of Japan

        For the Judas politicians we would pay a heavy price
        The jungles of New Guinea saw a costly sacrifice
        There’s a lesson to be learned that we’ve got to understand
        Peace can only be secured when the people lend a hand

    • Xi has made very clear this week he is siding with Russia. Of course he thinks he’ll be able to do to this while still enjoying selling into EU etc.He’s probably right. But sooner or later the world is going to split into at least 2 blocks. Also, Xi sounds happy about his gas deal but if the West has to pay such high energy costs won’t the ensuing recession shaft China’s export model? Or does he know it won’t matter by then as he’ll be into Taiwan?

      • I don’t think any global leaders are thinking straight at the moment. Especially China / Russia. But I also don’t give too much credit to Biden either.

      • Vaxxed & Infectious

        Ha ha China hold all the aces check all the sticky white labels on everything you buy whether junky trinket or high tech electronics it will say “Made in China”.

        You do not hold the whip hand

    • Built up fragility from hyper efficiency[tm] pre-existing supply problems jammed ports, a chronic trucker shortage, a diesel crunch, covid/long early retirements/wage slaves sick, all doused in the metho that is sanctions against Russia by the non agreeable Atlanticist ….

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