Commodities

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As Australia goes ex-growth so does the ASX

Dalian continues its recent pattern of firming at night and sagging during the day today: Big Iron is mixed: Big Gas is still stinky: Big Gold is up: Big Bubble is reeling: And Big Liar is as mendacious as usual as REA breaks out: As Australia goes ex-growth so does it’s share market. Avagoodweekend.

0

Macquarie dumps dirt

The great commodity bear market rally is over, apparently, via Macquarie: After the regular liquidity pushes of 2016, the Chinese government has now shifted to a tightening bias, propagating a destock cycle through the manufacturing chain. Chinese construction activity has been extremely strong, but we also expect sequential weakness in this area. To be clear,

8

As global stocks soar, ASX crumbles

Dalian is wandering aimlessly today: Big Iron is mostly up: Big Gas is burning: Big Gold is correcting: Big Bubble has had its run seemingly: Big Liar is soldiering on: And a bonus chart today, hope your enjoying Australian exceptionalism: If not, try the MB Fund launching July 1st with a 70% international equities allocation. Sign

1

Oil rebalancing ends

Oil bull Morgan Stanley capitulates today: The return of oil inventories to five-year average levels was characterised this week by the IEA as “the currency used to express re-balancing”. We still expect some draws in 2Q/3Q but on our estimates, a return to five-year average stock levels remains elusive for some time to come. The

10

Santos spouts rubbish, market dumps it

From Santos CEO Kevin Gallagher today on the domestic reservation mechanism: We believe there are better ways to manage this situation than government intervention that might expose the taxpayer to compensation payments while not delivering any public benefit. Remember this crisis is about pricing not supply, which is why I have questioned the net contributor