Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asian stocks are having another very mixed session given the rising tensions around Taiwan and China and the somewhat volatile session on overnight markets due to more hawkish Fed talk. The USD is holding on to its overnight reversal gains with the Australian dollar having slumped post the latest rate rise by the RBA, while Yen is weaker. Meanwhile oil prices are slipping below key support levels, with Brent crude remaining below the $100USD per barrel level, while gold has been able to clawback some of its overnight losses, currently at the $1767USD per ounce level:

Mainland Chinese share markets were looking to hold on to scratch sessions despite increased tensions of Taiwan but are selling off now, with the Shanghai Composite down 0.7% to 3167 points while the Hang Seng Index is still above water yet well below the 20000 point barrier, up around 0.5% to 19819 points. Japanese stock markets are coming back in similar fashion with a weaker Yen helping, with the Nikkei 225 up 0.5% to 27741 points as the USDJPY pair maintains it overnight bounce at the 133 level:

Australian stocks pulled back slightly in response to overnight volatility with the ASX200 closing 0.3% lower as it continues to reject the 7000 point level, closing at 6975 points. The Australian dollar was able to clawback some of its overnight losses but remains on the ropes here after a strong reversal post the RBA rate rise:

Eurostoxx and US futures are holding on to their start of week positions following the mild falls overnight with the S&P500 four hourly futures chart showing price action pausing here above the 4100 point level as the relief rally takes a breather:

The economic calendar ramps up with the latest UK and US Services PMI surveys.

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Comments

  1. Fishing72MEMBER

    Hey MB brains trust….open question for anyone to take a shot at answering if they feel like helping me out with their opinions. I just got made an offer on some land I’ve got sitting in Denmark WA. The amount sounds appealing and I don’t particularly think that land prices are going any higher but if I sold what would I do with the money? It may sound like an indulgence but I’m honestly perplexed about where I’d put $400K or thereabouts. In the bank ? Shares? A house? None of the above seems a particularly good suggestion to me right now. Feel free to try and convince me otherwise or another alternative. I’m a big fan of inertia and the land is utterly hassle free and it’s been easy to just pay rates as it’s gone up in value over the years….no stress about renters, fire, flood , white ants ….nothing. This might be the right offer at the right time? Bought if for $50K in 2002.

    Truly appreciate any advice.

    • Two questions, rainfall and access to borewater? In the coming years, a good bit of land, and being able to grow some veg, run a few sheep and cattle may be worth more, than short term cash settlement.

      • Fishing72MEMBER

        It’s 1100m on flat sandy soil near the beach. Couple of hundred metres from an inlet. Plenty of rainfall in Denmark. Neighbours grow great veg and fruit.

        • In time you might be able to agist it to someone who wants to grow a market garden…?

      • Fishing72MEMBER

        No decision is a decision. It’s worked so far. The housing market feels sketchy though. I’ve seen that property go down by hundreds of thousands before. It’s not a good feeling. But then it went back up a few years later. It should be a great celebration but it’s a sort of a headache.

    • reusachtigeMEMBER

      Yeah need to leverage that bonus capital and gear up into numerous investment properties!

      • Fishing72MEMBER

        Not sure I’m savvy enough to snap up enough bargains to upsize my portfolio*

        *vomit

    • The Wizz of Ozz

      Buy land where you want live yourself most people will value this land if they want to live there

    • You could hang on till the next peak – whenever that will be.
      Or sell it & buy wherever after interest rates have done their job – & before TEOTWAWKI.

    • 2023HomelessMEMBER

      My family sold 100ha of Karri forest on the hill above Denmark as 5ha blocks when I was a kid. I wish they held 5ha for me. Don’t sell.

    • ErmingtonPlumbingMEMBER

      Shouldn’t one be allowed to poison trees if it allows for more efficiently positioned and environmentally friendly solar collectors?

      The planet is not gonna save itself

    • Mining BoganMEMBER

      F#ck me, we were protesting in front of rich bastards’ houses at Noosa 35 years ago for the same thing. Council ended up putting up big billboards in front of said bastards’ houses saying some lowlife son of a motherless goat poisoned the trees for a view.

      This is why we can’t have nice things. And why Noosa has been an insufferable sh!thole for decades now.

  2. The Wizz of Ozz

    Only if you did not have enough grey matter dose it matter other wise sit in your places and stop you youdling because you are insignificant

  3. haroldusMEMBER

    I was going to hire a bouncy castle for a birthday but the prices have risen so much since last year.
    .
    That’s inflation for you.
    .
    .
    .
    😀

  4. Feel like people are letting the RBA off far too lightly.
    The economy has now stalled. Retail sales volumes are falling. Services have stalled. Consumer confidence is weak. We are in a pre recession environment.
    All the studies on health and recessions have demonstrated that suicide rates increase before the recession begins in anticipation of job loss. In the EU downturn in 09 they increased 7%.
    This is what the RBA is playing with. People’s lives.
    All because you have a bunch of business types on the board who simply don’t understand macroeconomics.

    • Business as usual?

      Don’t mean to sound so flippant but you are preaching to the choir and the general masses are so blissfully ignorant that it has zero importance to their day to day.

      Just need to wait for that society changing critical mass moment and an RBA created econimic sad time isn’t it. Of course ymmv

    • The Travelling PhantomMEMBER

      That applies too for the ” lock.us.down ” governments approach too and how they affected the mental health for young generations