Early morning chat-room chatter
I’ll post some further analysis soon from a more fundamental standpoint
There has also been uncertainty into the Australian elections this weekend (7th Sept), but polls show Abbott’s opposition Coalition party are now 6% ahead of the Labour party. A clear result should boost confidence. Furthermore, this morning Abbot stated he would break the emissions pledge, saying he would repeal the carbox tax ( http://bit.ly/14ROtX6 ) and revealed A$31bn in spending cuts.
It is also apparent positioning is at extremes (see relative IMM positioning chart 2), and commodity prices a have bounced in the past couple of months (chart 3), following sharp falls around the middle of the year. The RBA commodity price index, released today, showed a rise of +1.2% in August (in USD) following a rise in July. Base metal and iron ore prices rose, supported by rising demand from China. (see report: https://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=ztDn3I6UfU&n=385215.PDF Paul Bloxham)