Update: European markets are also getting hammered . See BBC for more. It seems that only the stock market has realised what the hell is going on. I captured this on my phone earlier in the day, the Nikkei closed down 10.55% after BOJ intervention. But it just seems absolutely bizarre that I am even discussing
There is more bad credit and sales data out today from the ABS. First, Motor Vehicle Sales: Trend – The February 2011 trend estimate (84 485) has shown a decrease of 0.3% when compared with January 2011. Seasonally Adjusted – The February 2011 seasonally adjusted estimate for new motor vehicle sales (84 122) increased by
Latin Resources’ Halloysite and Kaolin assays could be highest grade in Australia
Latin Resources Limited (ASX:LRS) has announced that majority of the test-work results from the Noombenberry Halloysite-Kaolin Project have now been received. Latin Resources has been conducting its maiden 2500m aircore drilling program at its Halloysite /Kaolin project in WA.
In today’s Minutes of the March 2011 Monetary Policy Meeting, RBA members had something of a coming out: The household and business sectors in Australia did not appear to be under financial stress, though both continued to show more caution in their borrowing behaviour, as evidenced in slower rates of credit growth over the past
Financial markets lack sentiment as shown by today’s price action. Japanese Prime Minister Nato Kan reignited the risk off rally today and send the Nikkei and AUD tumbling after discussing the rising fears of nuclear meltdown after a new fire at the Fukushima reactors. It is no understatement to say that this was the catalyst
There is a now constant stream of slowly worsening news coming out of Japan. As H&H linked to in a recent post the expected outcome of the Boiling Water Reactors should be far less worrying than what is being reported. A quick check of the BBC feed shows some chilling details of what is believed
Given the enormity of what is happening in Japan, it seems a little trivial to be tracking the possible effects on Australian shares. The greatest concern will be the long term impacts on the world’s third largest economy and one of the power houses of the Asian region. Japan is a heavy consumer of Australian
The US equity market held up pretty well last night but looks to me to be are underestimating risks all around. Poor Japan seems headed toward mutliple meltdowns. Live coverage is available at the BBC. New Scientist reports that assuming meltdowns are occurring then it is only a question of whether containment of the radioactivity
Meltdown under way at three plants. AP Coverage. BBC Japan’s impact on LNG. Alphaville Reconstruction could be $1 trillion. Zero Hedge Japan’s impact on LNG. Alphaville Metals mixed, copper slumps. Grains, Energy futures stable, gas jumps. Ore eases. $US crunched. Aussie flat. PIIGS relief: Greece, Ireland, Portugal, Spain, Italy, Belgium. Europe fixed! Naah. Naked Capitalism Saudi, UAE troops flood Bahrain. NYT Well … that was quick. Invasion alert. Stratfor (h/t
I was disappointed with The Economist’s recent special reports on housing. Whilst the reports captured the psychology and the demand-drivers of bubbles well (discussed in an earlier post), they failed to adequately capture the role of supply-side constraints. As far as I could see, the only reference to the supply-side of the housing market were
There is so much to say on the financial front about what is happening in the world right now. China finally seems to be making the right noises about its movement towards consumer led economic growth, take it or leave it. Bahrain has erupted again and is now asking for its much larger neighbour to step
The pressure is growing for China to open up its capital markets as a way to solve its internal bubbles. The question is: how will that affect the rest of the world? The greatest impact of China – its massive scale – is so far largely confined to trade and global production chains. What happens if
Not surprisingly the markets in Japan are under pressure in the aftermath of the earthquake and the massive destruction. The Nikkei is down 5.14% as I write and USD/JPY has bounced off a low for the day of 80.60, no doubt on the back of some intervention from Japanese authorities. The moves in Japan and
From The Automatic Earth and author Nicole Foss who has a “master thesis at the law faculty of Warwick University in Coventry, England, where she studied International Law in Development”, in nuclear safety research. She later became a Research Fellow at the Oxford Institute for Energy Studies, where her research field was power systems, with a specific
Is the AUD weak or strong? It’s hard to tell because it seems to find support above .9950, like it did Friday night, but can’t get through 1.02. This tight trading range has been in force for about 6 weeks now and has the bulls and the bears excited in equal measure each camp expecting
Deficit hysteria is alive and well in the United States as calls grow to slash spending and return the budget to a “sustainable” position. Today I am going to ask what may seem like a very obvious question: should the US quickly balance its budget or even return it to surplus? Of course it should,
Let me begin my reiterating my sympathies for the Japanese. There are a number of very big cross currents at work for markets today. The first, of course, if the suffering of the Japanese. Across the world, the coverage is remarkably alike, a result perhaps of diminishing foreign correspondent budgets and the secrecy of the
Japanese tension mounts. The Economist Partial meltdowns. FT Japan before and after. ABC Insurance fallout. Adele Ferguson Corrections. Tim Boreham Metals hit. Bloomberg Japan will need more energy. WSJ Ziggy tilts at the windmill. The Age So does Hamish Macdonald Bahrain edging toward civil war. Komo, FT Europe finds a deal. FT FOMC preview. Calculated Risk
The Australian banks’ heavy reliance on offshore funding has received limited coverage in the press lately. On Thursday, the Australian Financial Review (AFR) ran a story entitled Clyne sounds funding alarm, where NAB’s CEO warned about funding challenges facing Australia’s banks and the risks inherent to the Australian economy. Surprisingly, however, Clyne’s comments were not
Right now we do not know what is happening in Japan’s nuclear reactors. According to CNN, however, the news is very worrying: A meltdown may be under way at one of Fukushima Daiichi’s nuclear power reactors in northern Japan, an official with Japan’s Nuclear and Industrial Safety Agency told CNN Sunday. “There is a possibility,
One of the best stockbrokers I have ever known once said to me, in characteristically gruff fashion” “Mate, the market is always right. Even when it is wrong, it is always bloody right.” He was a great broker because he understood crowd psychology and the limited utility of numerical analysis. A great lesson in humility.
Metals, Grains, Energy futures crushed. Ore smashed. $US crunched. Aussie rocket. Bifurcating PIIGS: Greece, Ireland, Portugal record wides; Spain, Italy, Belgium relief. All tsunami news. FT Drunken skyscrapers. You Tube Saudi’s day of saturation police presence. FT Forget Saudi’s increasing production. Jim Hamilton Gaddafi to prevail. FT Kuwaiti protesters gassed. Zero Hedge US job openings fall, consumer confidence hit. Calculated Risk US still deleveraging. Zero Hedge More
Update 1:30am: Large wave hitting Hawaii again. Maui harbour bouy rising 7ft. Nikkei was down 170 for day, futures are currently down 200. Update 12:48am: Hawaii has been hit by second wave, water over roads(?), water has receeded out 200ft or so and seems to be rising. Water is moving up the beaches !!
Summary The S&P/ASX200 index closed 1.16 per cent lower to 4,644.8 points today, finishing a bad week for local stocks (if you are a buy and hoper). The index is down 3.94% for the week and just over 6% since the highs in February. Asinine commentary aside, justifiable fears are weighing on global markets, particularly
A couple of pieces from around the world in the last few days set up an interesting and crucial debate for Australia vis-a-vis China’s new Five Year Plan. The first is by long-term China watcher and economic heavy-weight, Barry Eichengreen: China has been able to grow so rapidly by shifting large numbers of underemployed workers
Metals solid. Grain futures spanked. Energy futures crushed. Ore eases. $US rocket. Aussie smashed. It’s China’s fault. Bloomberg It’s oil’s fault. FT Portugal, Greece, Ireland to default. Eurointelligence PIIGS relief. Greece, Ireland, Portugal, Spain, Italy, Belgium. German idiocy. Zero Hedge More planning for no fly zone. Bloomberg Gaddafi gains. Reuters US housing plunges to new low. Calculated Risk US deficit yawning. Calculated Risk Fed to
From the morning links: Explosive growth of unemployment recorded in Greece, with a total number of unemployed is at 733,645, according to data from the Greek Statistical Authority (ELSTAT) that were released Wednesday. The percentage of registered unemployed reached 14.8% in December 2010 an increase of one percentage point compared with November. The number of
Well that didn’t take long – the ASX200 has corrected again this morning, with an intraday level at 4714 points. Readers may have noticed that I am still wrong about a possible rally! In my last regular weekly analysis I did mention however: But basic charting analysis suggests a more bearish stance: a classic head
Technical analysis is the study of patterns of movements in price action of a market or asset as a predictive tool for the future movement of those prices. Technical analysis recognises that price volatility is greater than fundamental volatility and for me technical analysis is a really important tool in the armoury of a trader
More pain for PIIGS: Greece run. Ireland, Portugal, Spain, Italy, Belgium. Obama’s no fly zone is looking like PR. FT Libyan war. FT $US sideways. Grains futures flogged. Metals crushed. Energies, gold flat. Greece reaches do or die. To Vima (h/t Calculated Risk) Ireland up for haircuts. Labour (h/t Calculated Risk) PIMCO dumps all Treasuries. Zero Hedge No OPEC capacity increase. Reuters
After a quick holiday across the pond in NZ (luckily not near Christchurch), your blogger returned to Australia to the news that West Australia Newspaper Holdings (WAN) is going to buy the Seven Media Group from Seven Group Holdings (SVM). So a WA media monopoly is marrying the TV sideshow of a Caterpillar servicing business. I can’t wait to see their kids.