Tyler Durden's picture

Gold, Silver, Copper, & Crude Are Soaring On Heavy Volume

Dollar weakness continues (after weak US Services PMI) which has sent stocks to new record highs but it is the China-QE-driven commodity complex (along with Aussie and Canadian Dollar) that is in outright vertical panic mode...



Tyler Durden's picture

Despite US Services PMI Miss, Markit Says "FOMC Should Normalize Policy Sooner"

After 3 months of somewhat surprising strength (given the background of disastrous hard data), US Services PMI dropped in April by the most since December, missing expectations by the most on record. Against serial extrapolators' expectations of a rise to 58.9, PMI fell to 57.8 with cost inflation jumping to a six-month high and the biggest rise in the jobs index suggests to Markit that "the FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.."



Tyler Durden's picture

Varoufakis "Containment" Sparks Buying-Panic In Greek Bonds; Silver, Crude Pumped As Dollar Dumps

It appears the 'containment' of Greek FinMin Varoufakis has sparked exuberance in Greek bond markets. 10Y GGB yields are down over 60bps (and 3Y -275bps!) on the news. The machines appear to have decided now is the time to  dump dollars en masse.. and that has smashed crude oil and silver prices higher. Stocks have shrugged it off for now...



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RANsquawk - Week Ahead - 27th April 2015



Tyler Durden's picture

Levered Funds Are The Most-Short Bonds Ever, Russell Shorts Lowest In A Year

It appears the ammunition for another leg higher in bond yields and small cap stocks is running dry quickly. As BofAML notes, speculators added to Russell 2000 positions for the 5th of the 6 weeks, reducing small cap shorts to smallest in a year. Spec buying of crude continues unabated with the 4th week in a row lifts net long to highest since August. The bond complex is at extremes everywhere: large specs bought 2Y bonds for the 7th week in a row, lifting the 2Y bond net long to a 2-year high; but levered funds have never been more short the long-bond. Finally, VIX Spec shorts have soared to one-year highs. All-in-all positions are extreme to say the least.



Tyler Durden's picture

Under Pressure From Europe, Tsipras Prepares To Show Varoufakis The Door

On the heels of highly contentious (and largely unsuccessful) negotiations in Riga on Friday, Greek PM Alexis Tsipras is "reshuffling" his negotiating team in an effort to jumpstart talks with creditors. As Reuters reports, the well-liked deputy Foreign Minister Euclid Tsakalotos will now coordinate the team and will "have a more active role in face-to-face talks from now on." Meanwhile, Yanis Varoufakis hates "boring dinners."  



Tyler Durden's picture

ISIS Leader Al-Baghdadi Dead, Radio Iran Claims

Following The Guardian's report that ISIS leadder Abu Bakr Al-Baghdadi had received serious "life-threatening" injuries during a US-led airstrike in March; in what could deal a severe jolt to the extremist organization, Radio Iran has claimed that the ISIS caliph has died.



Tyler Durden's picture

Key Events In The Coming Week: April FOMC And Q1 GDP

There are two main events in the coming week: the (second in a row disastrous) Q1 US GDP and the April FOMC.



Tyler Durden's picture

Frontrunning: April 27

  • Nepal earthquake toll crosses 3700 (Reuters)
  • Greeks Add Pressure on Tsipras to Compromise as Talks Resume (BBG)
  • With No Deal on Greek Bailout Aid in Sight, Some in Europe Suggest ‘Plan B’ (WSJ)
  • BOJ Shouldn’t Ease Further; Yen Fell Enough: Business Lobby Head (BBG)
  • Clinton Foundation admits making mistakes on taxes (Reuters)
  • Here’s the Old Nemesis Starting to Spook Bond Traders Again (BBG)
  • Deutsche Bank to Trim Investment Banking (WSJ)
  • China’s Stocks Rise to Seven-Year High on SOE Merger Speculation (BBG)


Tyler Durden's picture

China Considers Launching QE; Shanghai Stocks Soar

Nearly two months ago we explained "How Beijing Is Responding To A Soaring Dollar, And Why QE In China Is Now Inevitable" in which we said that "once China, that final quasi-Western nation, proceeds to engage in outright monetization of its debt, then and only then will the terminal phase of the global currency wars start." We may not have long to wait because just hours ago, MarketNews first among the wire services hinted at what we suggested was the endgame: PBOC DISCUSSING DIRECT PURCHASES OF LOCAL GOVT BONDS: MNI



Tyler Durden's picture

Equity Futures At Session Highs Following Chinese QE Hints; Europe Lags On Greek Jitters

It has been a story of two markets so far, with China's Shanghai Composite up another 3% in today's continuation of the most ridiculous, banana-stand driven move of the New Normal (and there have been many ridiculous moves in the past 6 years) on the previously reported hints that the PBOC is gearing up to start its own QE, while Europe and the Eurostoxx are lagging, if only for the time being until Citadel and Virtu engage in today's preapproved risk-on momentum ignition, on Greek jitters, the same jitters that last week were "fixed"and sent Greek stocks and bonds soaring. Needless to say, neither Greek bonds nor stocks aren't soaring following what has been the worst week for Greece in months.



Tyler Durden's picture

Fitch Downgrades Japan To A From A+

With the USDJPY's ascent to 125, 150 and higher having seemingly stalled just under 120, with concerns that the BOJ may not monetize more than 100% of its net debt issuance suddenly surfacing, the BOJ and the Nikkei would take any help they could get. They got just that an hour ago when Fitch downgraded Japan's credit rating from A+ to A, citing lack of sufficient structural fiscal measures in FY15 budget to replace deferred consumption tax increase. 



Tyler Durden's picture

Caught On Tape: Dramatic Video & Images From The Mount Everest Avalanche

In the immediate aftermath of yesterday's destructive Nepal earthquake, which has led to hundreds of aftershocks and a constantly rising death toll, currently exceeding 2000, the most visually stunning, if quite deadly, phenomenon was a massive avalanche on Mt. Everest and leading to at least 17 casualties, including a Google executive, and 61 injured.



Tyler Durden's picture

Capital Controls Arrive: Greece Begins Confiscating Deposits Of "Small Debtors"

"Soft" capital controls arrived in Greece last week with the state decree requiring local governments to transfer reserves to Athens. Now, Kathimerini reports that debtors are seeing their accounts frozen in an indication that "hard" capital controls are set to be instituted amid a deepening cash crunch. 



Tyler Durden's picture

The Virtual Immunity Of The Well-Connected: Gen. Petraeus Edition

The leniency shown former CIA Director (and retired General) David Petraeus by the Justice Department in sparing him prison time for the serious crimes that he has committed puts him in the same preferential, immune-from-incarceration category as those running the financial institutions of Wall Street, where, incidentally, Petraeus now makes millions. By contrast, “lesser” folks – and particularly the brave men and women who disclose government crimes – get to serve time, even decades, in jail. Behold, the virtual immunity enjoyed by the well connected.



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