It’s more of the same for Chinese credit. Total social financing was RMB 3760bn in September, up 8.0% year over year vs. 8.1% in August. Under the bonnet, M1 is still in hell, M2 lifted a little: Households barely budged, bank loan growth is still falling, it is all government bonds: Nothing here to crow
Breakouts aplenty on risk markets overnight with Wall Street making another record high, pulling along European equities again while the USD pushed Euro and other currencies into submission while oil prices broke down as Israeli “promised” not to target Iranian oil wells. This should translate to more bids here in Asia across stocks at least.
DXY is up and away: AUD is getting hosed: North Asia too as CNY gives way: Oil and gold are under pressure: Metals too: Big miners are still in a downtrend: EM stocks yawn: Junk good: Yields eased: Stocks to the moon: A quick on China shows what’s driving AUD weakness. CNH can’t break out:
Sameer Chopra from CBRE says apartment prices in Australia have not kept pace with construction costs over the last five years. CBRE forecasts that Australian apartment supply will only average around 50,000 units annually between 2025 and 2029. This is around half the 2017 peak and well below the rate required, given population growth. Chopra
Builder Jason Janssen, chairman of Home Builders Action Group, has described the utter “decimation” of the home building industry in the wake of federal and state government Covid housing stimulus and the subsequent surge in construction costs. “Unfortunately a lot of builders took on too much work as part of the stimulus and they are
Asian stock markets are taking the bullish cue from Wall Street on Friday night but have to navigate some Chinese volatiltiy that actually started on Saturday with some mixed messaging around stimulus measures from the PBOC. Not helping matters particularly in currency land is more saber rattling by the Chinese Navy around Taiwan with the
Victoria has the nation’s most indebted government and the lowest credit rating. Victoria’s ballooning debt has helped to drive up interest payments: One of the reasons why Victoria is drowning in debt is the bloating of the state’s public service. Victoria’s public sector workforce grew by 59% in the 15 years to 2022-23, easily exceeding
Goldman with more on why the AUD is struggling to gain traction. USD: Long wait to abdicate. After showing some apparent cracks over the summer, the pillars of Dollar strength now appear just as solid as ever. We had previously argued that the initial factors that weighed on the Dollar earlier in Q3 had mostly
The Market Ear on the exuberance free stock bubble Curious case of depressed sentiment The bull officially turns two today. Up more than 60% during the time period. Bull markets last more than five years on average, so there could for sure be more left in the tank. Why then are strategists, sentiment and positioning
The Australian Chamber of Commerce and Industry (ACCI) has called on both sides of politics to address the issue of tax reform in the lead-up to the next federal election, with CEO Andrew McKellar noting that it is now over 25 years since the GST was introduced. The ACCI wants to see the reliance on