ASX bath of blood drains into bank rip

by

The Australian dollar is pulling back a little from the overnight surge:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/erth.png

Bonds are firm:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-2-3.png

XJO is holding:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-3-2.png

Underneath the bonnet, however, there is considerable action. Big Iron is copping it:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-4-3.png

Big Gas marches on:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-5-3.png

Big Gold is bashed:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-6-3.png

But Big Banks have launched as Australia’s virus victory percolates:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-7-4.png

The financials index has very a bullish breakout chart:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-9-1.png

And some relative value argument at 14-15x forward. Hardly cheap but relative value:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/werty.png

Not so Big Chunt:

https://www.macrobusiness.com.au/wp-content/uploads/2020/05/asx-8-2.png

ASX bath of blood is draining into a bank rip.

https://www.macrobusiness.com.au/wp-content/uploads/gravatar/david-cropped-1.png

David Llewellyn-Smith
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

https://www.macrobusiness.com.au/wp-content/uploads/gravatar/david-cropped-1.png

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