Wall Street tried to rebound overnight in the absence of any catalysts or economic prints but the stronger USD weighed on all risk markets despite a new low for Euro as European stocks continued to fall. The Australian dollar continued its descent below the 67 cent level as well. US bond markets saw some further
DXY is up and away: AUD is a free-falling stone: North Asia too: Gold has divorced from all fundamentals. Other commods not so much: Big miners are saying Chinese yawnulus: EM too: Junk party has stalled: Yields bid: Stocks edged up against the downdraft: DXY is overbought but can get more so: The reason? President
I noted earlier this week that Australia’s homeownership rate collapsed in the 40 years to 2021, as illustrated by the following chart from the 2023 Intergenerational Report: In 1981, around 55% of Australians aged 25 to 29 owned a home. Four decades later, the homeownership rate decline to a little over 35% for 25 to
The Housing Industry Association (HIA) claims that Australia desperately needs 83,ooo tradies to meet the Albanese government’s target of building 1.2 million homes over five years. “Australia does not currently have enough tradies to build the number of homes needed to house the population and take pressure off housing costs”, the HIA claims. “The residential
Yesterday we had more evidence that the RBA is reading the big pivot to a December rate cut when economics governor, Sarah Hunter, explained why its inflation expectations modelling is not worth the processing power wasted on it: The orange line is the model’s prediction for how inflation expectations would evolve during the recent high-inflation
Asian stock markets are all in the red after the retracement on Wall Street overnight although Chinese are relatively flat as they continue to absorb the PBOC stance on stimulus. Currency markets are still under the thrall of King Dollar with the Australian dollar still getting dragged down despite some dovish talk from the Fed
The Reserve Bank of New Zealand has cut the official cash rate by 0.75% over the past two monetary policy meetings. Despite the cuts, monetary policy remains highly restrictive, as illustrated below by Justin Fabo at Antipodean Macro: New Zealand’s economy is experiencing a deep per capita recession, with GDP declining by around 4% from
Two points: Stocks are overboughterer. They are not priced for Trump tariffs. The Market Ear has more. Rising wedge Did NASDAQ fool people into chasing tech yesterday as it looked to be breaking up? To us this looks like a rising wedge, where highs are losing momentum, failing to trade above the upper trend line.
The Actuaries Institute reported in August that 1.6 million Australian households were experiencing financial stress as a result of escalating home insurance costs. This was a 360,000-household rise, or 30% more than the previous year. According to Sharanjit Paddam, the primary author of the Actuaries Institute report, insurance premiums were rising faster than earnings, with
There is no end in sight to the energy superidiot: The opposition has opened a second front in the fight over energy policy by pledging to include gas in the capacity investment scheme, the federal government’s flagship policy spurring investment in clean power generation and storage needed for the transition. On top of its pledge