The Market Ear on panicking robots. Breaching big levels On April 10, in our thematic email, We are getting close to a CTA selling tsunami, we pointed out the “sensitive” set up and wrote: ” Just a few points lower CTAs will for the first time this year start selling in size…to add insult to
DXY is up and away: AUD has been shot to the cliff’s edge: North Asia is a pair of lead boots: Do we run our cars on gold or oil? Goldman’s latest disgrace, squeezing copper and aluminium is sucking cash up the blood funnel: The world’s second largest iron ore dog is now its hottest
Another hot US economic print plus continued war jitters across the Middle East caused Wall Street to pull back sharply again following the Friday night volatility. The USD pushed back against the undollars, although gold was able to rebound, while bond yields jumped to new highs across the curve. The Australian dollar made new lows
Rebar was down yesterday and its only redeeming feature is its technical bounce from the 3300-3500 long term support area: Even Dalian is starting to look tired: Port stocks are still rising and scuttlebutt is poor: “Given the remaining high steel stocks, a further increase in hot metal output might not be conducive to the
Some sanity at last from Australia’s worst newspaper, the AFR: The Reserve Bank of Australia might have to cut interest rates before the United States, as persistently high inflation in the world’s largest economy casts doubt over whether the Federal Reserve can do anything this year. As the world’s most powerful central bank because of
CBA published the following chart last week, showing that Australian residential construction costs have soared by between 30% and 40% since the beginning of the pandemic: Independent economist Tarric Brooker posted the following chart on Twitter (X) showing the average construction cost of new homes across Australia: The average construction cost across Australia was 395,000
A rocky start to the trading week with most stock markets in Asia losing significant ground in response to the escalation in conflict across the Middle East, with the spike in USD on Friday night seeing some undollars clawback their losses. Commodities and bond markets are still high in volatility while traders await tonight’s US
David Chaston from Interest.co.nz believes that the Reserve Bank has been placed in a difficult position on interest rates, caught between a recessionary economy and stubborn services inflation. Chaston notes that New Zealand’s economy faces a “severe slowdown”. The economy is already experiencing a technical recession: And per capita outcomes are much worse given New
Everything must learned the hard way by Jim “chicken” Chalmers: Treasurer Jim Chalmers regards a second surplus in the May budget as “still our goal”, but has revealed Treasury analysis showing a recent fall in iron ore prices will punch a $9 billion hole in the nation’s books over the next four years. Appearing on
Productivity Commission chair Danielle Wood has expressed concern about the federal government’s Future Made in Australia Act, claiming it risks entrenching industries that would always be dependent on government subsidies for their survival. Former Commission chairman Peter Harris agrees with Wood that “this is a slippery slope and most times the investment fails”. Bill Scales,