Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asian stocks are having a very mixed end to the trading week with Chinese stocks pulling back strongly on the poor US GDP rpint, while Australian markets are having grand time to push the ASX200 above 6900 points. Market’s are still absorbing the latest Fed rate hike and subsequent slowdown signaling with the USD losing the most ground against Yen as the Australian dollar holds just above the 70 level. Mean while oil prices are slowly going nowhere with Brent crude hovering at the $102USD per barrel level, while gold has pushed higher in the Asian session to reach the $1760USD per ounce level to make a two week high:

Mainland Chinese share markets are sliding fast going into the close with the Shanghai Composite down more than 0.7% at 3258 points while the Hang Seng Index is now in full reverse mode, losing more than 2%, currently at 20105 points. Japanese stock markets are slipping as the higher Yen weighs, with the Nikkei 225 down 0.3% to 27751 points as the USDJPY pair drops sharply down to the 133 level as Yen buyers step in amid the renewed USD weakness for a new low:

Australian stocks are having another very solid lift from the Fed rate hike fallout with the ASX200 about to close nearly 1% higher to push through the 6900 point level, currently at 6954 points. The Australian dollar has again tried to punch through the 70 handle but hasn’t really advanced on last night’s post Fed move as momentum remains nicely overbought:

Eurostoxx and US futures are holding on to their overnight gains with the S&P500 four hourly futures chart showing price action wanting to continue its breakthrough above the 4000 point level to continue this relief rally:

The economic calendar does not end the week quietly, with German unemployment, Euro wide core inflation, then US Core PCE and consumer sentiment. That’s a mouthful!

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Comments

  1. The Travelling PhantomMEMBER

    Another week finishing…
    May Boom get a good day of surfing…
    And everyone enjoy your Friday’s fish & chips and whatever you wash it down with.
    Hopefully 0.75% on Tuesday.
    Oh , and Mr Atom ⚛️ thank you for keeping the sundries alive

    • Lol indeed.

      And to hell with that stupid woman. People should not be required to endorse stupid homosexual shit as part of their employment. It’s just a job, and if those blokes aren’t on board with the ar$e bandits, then good on ’em.

  2. Fishing72MEMBER

    Genuine enquiry :

    Can the good and kindly folk smell the unmissable stench of car exhaust which permeates the air blanketing your Metropolis or are you all so accustomed to it that you can no longer notice it if you try?

    I just pulled into town and it’s a horrendous.

    BTW – Drove from Hornsby to Cronulla just after lunch and it was bumper to bumper the whole way. Whooee…..joint sure is busy. Work from home crowd on the streets all day instead of just peak hour now?

      • Fishing72MEMBER

        The toll roads don’t register on my maps app and I struggle with the signage. Fcuked if I know why there’s not a generic North coast / South Coast / West NSW to follow for people who are unfamiliar with the individual suburbs marking waypoints on the route. It must be impossible for international travellers. I got lost on the North Connex last time I tried heading back up the coast. Where’s the sign simply stating “North Coast” like the one as you come North from the Harbour Bridge?

      • Fishing72MEMBER

        I understand your plight but surely there is a very real externality to factor into the monetary equation; namely the cost to the most valuable asset you’ll ever own – your health. Apparently air pollution kills millions of Indians each year ( curry, not tomahawk). If the air in Sydney is so bad that it makes me feel like sh1t after few kilometres of traffic then what’s it doing to you and your family long term?

        No wonder every other car had their windows up on a brilliant blue sky day.

        India covid deaths are about 500K whilst in 2019 1.6M Indians died from air pollution
        https://www.downtoearth.org.in/news/pollution/india-had-world-s-highest-pollution-related-deaths-in-2019-report-82926

        PS…Saw my first ever highly skilled food delivery technician today. Then consequently saw about 100 more in the next few hours. Exactly like the Indonesian Gojek. We wanted to be part of Asia….we got it.

        • I know it’s killing me but so is the booze and the asbestos and the drugs and diet and the modernity and the capitalism.

          I’m resigned to it, for now.
          I lived semi rural on the Sunshine Coast before moving to Brisbane, as a renter/mortgage payer it’s terrible economics, more fuel to get to work, less work available, lower paid work when it is available.

          As always, the goal is to move back to the quieter parts of the country once the finances are organised but that’s probably never gnna happen, left it too late lol.

          • Fishing72MEMBER

            It ain’t over till it’s over.

            As long as you’re happy it doesn’t matter where you are.

            Bit heavy on the platitudes tonight….my apologies.

          • In the stench department, I really didn’t think Brissie was that bad when we went through a couple of weeks ago.
            Then again, I had a horrible cold. Maybe I just didn’t notice…

          • Brisbane stench depends where you live, what I definitely smell is truck exhaust and burning brakes but I live on a main road. It drops off significantly at night time but I still have that thought in my head of what am I breathing.

            Luckily I’m at the back of the block and this is quite a leafy neighbourhood so I’m relying on trees and shrubs to be my filters.

    • The Traveling Wilbur

      Not your imagination. As evidenced by, the joys of recovering from decades of sinus infection to be followed by being able to smell the local surrounds again, properly.

      And
      Peoples’
      Fckén
      Deodorant.

    • For me, the stench starts around Newie, and builds from there. By the time I get to Warringah, I can’t smell anything any more – the only things that get through after that are Brut 33, very cheap and very expensive women’s perfumes and that stuff they get out of cafe grease traps.
      Man, if I never have to go back to that place, I’ll be one happy camper…

      • Fishing72MEMBER

        You forgot energy costs and Mass immigration/ diversity or death.

        Ubiquitous across the developed Western world and all from the same song sheet.

      • The Traveling Wilbur

        People keep saying that they *enjoy* Foodcourt KFC.

        Fair enough.
        I just want to know whether they wait for people to leave their tables, or have figured out some way to subtly pull the trays out of the bins?

      • SweeperMEMBER

        Haha.
        They followed the MMT playbook.
        Huge tax cuts in 2019 – because “taxes don’t pay for spending.
        Then the CB head confidently told the world there was nothing to worry about – due to “monetary sovereignty” and the religious teachings of MMT.
        Well it turns out all the mainstream economists and developed country finance ministers and central bankers and 100s years of economic history were right.
        There really is a long run budget constraint – irrespective of fiat powers
        Who could have knowed?
        And I mean this is the real cost of MMT. It’s not just theoretical. Its 80% food inflation. It’s people going without rice due to shortages and missing meals, malnutrition, medicine shortages.
        And it always hurts the poorest more because a greater share of their wealth is held in money balances.

  3. The Travelling PhantomMEMBER

    So if a recession hits…
    Is it because of the un_controlled inflation and people can’t spend more, or because of increased interest rates and people can’t borrow more to spend??

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