China's Emergency Rescue Is Working: Chinese Futures At Session Highs
Submitted by Tyler Durden on 01/07/2016 - 11:06
Chinese stocks have retraced 50% of their overnight losses following the lifting of the circuit-breaker rule. China FTSE-A50 Futures trading on SIMEX are up over 250 points, trading at the highs of the day but for some context, the index is still down 14% from post-Christmas highs.
2016 Theme #4: The End-Game Of Debt-Fueled "Growth"
Submitted by Tyler Durden on 01/07/2016 - 10:57
It's requiring more borrowed yen/yuan/dollars/euros just to keep the global economy from collapsing in a heap of impaired debt. The costs of waste, fraud and mal-investment are finally coming home to roost, and while near-zero interest rates serve to mask the future costs, near-zero rates cannot stem the rising tide of mal-investment. Rather, near-zero rates have fueled mal-investment, waste and unproductive spending. The diminishing returns on that strategy of "growth" are inescapable.
Why Bank Of America Just Said To Go Long "Cash & Volatility", In Charts
Submitted by Tyler Durden on 01/07/2016 - 10:49
Denmark Hikes Rates As Draghi's "Hawkish" Ease Relieves Peg Pressure
Submitted by Tyler Durden on 01/07/2016 - 10:40
When Mario Draghi “disappointed” markets in December by “only” cutting the depo rate by 10 bps and “merely” extending PSPP by six months while electing not to expand monthly asset purchases, the Riksbank, the Nationalbank, the Norges Bank, and the SNB all breathed heavy sighs of relief. And while we doubt the ECB is done when it comes to going "full-Krugman" (as it were), Mario Draghi’s “hawkish” ease did buy his counterparts some breathing room. Case in point: Denmark just hiked.
Canada PMI Crashes Into Contraction
Submitted by Tyler Durden on 01/07/2016 - 10:13
Canada's Ivey Purchasing Managers Index collapsed from an exuberant and simply unbelievable 63.6 in November to a contractionary 49.9 in December - one of the biggest MoM drops on record and biggest misses on record. On a seasonally-unadjusted basis, this is the weakest print in at least 2 years. From the best data since February 2012 to the worst since February 2015 seems to expose these soft-surveys as practically useless. The huge drop in Inventories suggests a major drag on GDP and an extension of Canada's recession.
Bill Gross Warns Of Demographic Doomsday
Submitted by Tyler Durden on 01/07/2016 - 10:08
"Demographics may not rule absolutely, but they likely will dominate investment markets and returns for the next few decades until the Boomer phenomena fades away. The 1% – in addition to the 99 – will need extra doses of Xanax, or additional slices of cake, to cope."
Copper Futures Crash Below $2 For First Time Since 2009
Submitted by Tyler Durden on 01/07/2016 - 09:54
Dr. Copper is sick. For the first time since May 2009, Copper futures prices traded with a $1 handle this morning ($1.99) as Nomura analysts warn the commodity is likely to see more downside risk over the medium term as the market is expected to remain in surplus through the end of the decade.
China Suspends Circuit-Breaker Rule - "This Is Insane; We Were Forced To Liquidate All Our Holdings This Morning"
Submitted by Tyler Durden on 01/07/2016 - 09:38
Update: *CHINA SUSPENDS STOCK CIRCUIT BREAKER RULE - In Q&A, CSRC insists circuit breakers didn't cause the China meltdown but admits they may have aggravated sell-off.
"It couldn't be worse," exclaims one manager who started his fund mid-year in 2015, blaming China's equity market carnage on its newly-created circuit-breakers (as opposed to the fact that the Chinese market trades at 64x P/E and there are sellers everywhere). "Panic will eventually turn into a buying opportunity," hopes one strategist while another proclaims "poorly-designed" circuit breakers need to be adjusted to 10% (seriously). Blame is everywhere, but it is Chen Gang who summed up the panic best, "this is insane... we were forced to liquidate all our holdings this morning."
"In Jeopardy" The Bull Market Is Breaking Bad-der
Submitted by Tyler Durden on 01/07/2016 - 09:26
This week has seen a slew of significant levels related to the post-2009 bull market break on several key stock indices.
Initial Jobless Claims Regime Shifts - Average Jumps To 6-Month Highs
Submitted by Tyler Durden on 01/07/2016 - 08:36
The much-watched four-week average of initial jobless claims rose to 277k, accelerating to the highest levels since early July 2015. This "trend shift" began as rate-hike odds increased in October... just as we saw the trend shift after QE3 ended...
Gold, Bitcoin Soar After China Liquidates Most Reserves On Record To Defend Currency
Submitted by Tyler Durden on 01/07/2016 - 08:16
As the PBOC revealed overnight, China’s foreign-exchange reserves plunged much more than forecast in December, capping the first-ever annual decline (of $513 billion) as authorities sought to prop up a weakening yuan. More importantly, the $108 billion decline from $3.438 trillion to $3.330 trillion - far greater than the $20 billion estimated - was the largest on record, and shows that while on the surface the Yuan was stable, behind the scenes the PBOC was furiously dumping securities to prevent an all out currency rout as outflows hit a record.
French Police Shoot Man With Knife, Bomb Vest On Charlie Hebdo Anniversary
Submitted by Tyler Durden on 01/07/2016 - 07:57
On the one year anniversary of the Charlie Hebdo attacks, one man decided to "celebrate" by storming a police station in Paris - with a knife. He was promptly shot.
Frontrunning: January 7
Submitted by Tyler Durden on 01/07/2016 - 07:40- China turmoil sends oil, stocks sliding (Reuters)
- China's Stock Traders Go Home After 29 Minutes (BBG)
- Yuan hits weakest since Feb 2011 on fresh low midpoint (Reuters)
- Stocks Extend Rout, Oil Slides on China as Soros Warns of Crisis (BBG)
- China's 29 Minutes of Chaos: Stunned Brokers and a Race to Sell (BBG)
- North Korea Uses Bomb Test to Boost Dictatorship (WSJ)
Global Stocks Crash After Spiraling Chinese Devaluation Unleashes Worldwide Chaos And Selling
Submitted by Tyler Durden on 01/07/2016 - 07:34
Once China set the Yuan fixing some 0.5% lower, the biggest drop since the August devaluation, all hell broke loose and unleashed a global selling panic after China's stock market was promptly shut down less than 30 minutes into trading, then European shares dropped the most in more than 4 months as Asian equities plunges, as did US stock futures, the dollar weakened against the euro and the yen; crude plunged to fresh 12 year lows. Gold rose.
Iran Accuses Saudi Arabia Of Bombing Its Embassy In Yemen
Submitted by Tyler Durden on 01/07/2016 - 07:18
In a move that could very well lead Iran to take the "proxy" out of Yemen's proxy war, Saudi Arabia has reportedly bombed the Iranian embassy in Sana'a, injuring staff in what Tehran says was a "deliberate" attack. "My classmate and I were at recess when a huge explosion hit the neighborhood. We ran to the side and she fell to the ground in fear."
