Archive - Aug 12, 2015
Greece Isn't Fixed... By A Long Way
Submitted by Tyler Durden on 08/12/2015 12:00 -0500The bail out is a cynical ruse, not to benefit Greece as a whole, but to benefit the banks and other creditors (the ECB and the IMF) who should take their medicine and move on. The one thing keeping the whole blighted euro project in place is an arrogant denial of the facts. A loss of political face now is a small price to pay for a much better outcome that will disadvantage far fewer people than the disorganised chaos into which Euroland will descend if the current bunch of lunatics are not put back in the asylum. Is this a Europe we want to be part of?
How China Trades US Treasurys When It Wages Currency War
Submitted by Tyler Durden on 08/12/2015 11:45 -0500Ever wondered how a nation wages a currency war? As Reuters reports, Chinese state-owned banks were selling dollars on behalf of the central bank to stabilize the yuan around 6.43 against the dollar on Wednesday, foreign exchange traders in Shanghai said, as the devaluation collapse got a little out of hand. This follows wholesale dollar-asset buying to weaken the Yuan. But that leaves the question, how did they get the dollars? As the chart below shows, by trading Treasuries...
Why Were Corn Traders Just Crushed?
Submitted by Tyler Durden on 08/12/2015 11:33 -0500Corn (and soybeans) are plunging, limit down on CBOT following data from the August WASDE report. The USDA unexpectedly raised output estimates for corn stocks and production dramatically higher than expected. This in and of itself would send corn prices lower but the significance of the shift is likely exaggerated by the fact that satellite imagery had suggested signficantly worse crop conditions ahead. One wonders who will be right?
"This Will End Badly" High Yield Bonds Tumble To Worst Since 2011
Submitted by Tyler Durden on 08/12/2015 11:25 -0500As far as credit markets are concerned, U.S. stock investors have lost touch with reality.
Treasury Longs Beware: Gartman Is About To Be Stopped Out Of His 10Y Short
Submitted by Tyler Durden on 08/12/2015 11:05 -0500"We were convinced that a top has been formed over the course of the last several months and we were willing to be short but the Chinese devaluation has wrought havoc upon us, catching us and everyone else out. As we write, the September t-note future is trading 128 ¼ and that is ¼ point above our “close only” stop."
Italian Bond Futures Flash-Crash Into Close
Submitted by Tyler Durden on 08/12/2015 10:41 -0500Fat-Finger, Flash-Crash, or Forced Liquidation... either way, something broke in the Italian bond futures market...
Blood On The European Streets As EUR-Yuan Carry Unwinds Crush Stocks
Submitted by Tyler Durden on 08/12/2015 10:34 -0500EURCNH was among the most popular carry trades - a stable long leg and central bank sponsored weakness in the sell leg. That is why, now that The PBOC has peed in the punchbowl, all that easy money carry has been forced to unwind as volatility forces traders to buy EUR and sell CNH en masse, shuttering the carry-funded trades as they go. No where is that more clearly visible than the plunge in European stocks.
Dong Unleashed: Vietnam Preserves Currency Shrinkage With Wider Trading Channel
Submitted by Tyler Durden on 08/12/2015 10:26 -0500Many years ago, we said that the real comedy in the world of FX won't start until Vietnam start devaluing its currency. And even as Vietnam decided to slash its Dong on numerous occasions over the years we were looking forward to all the amusement the Asian country, once engaged in physical war with the US would provide us in its response to the just launched FX war with China, in order to preserve its currency's ongoing shrinkage. We got the answer overnight when Vietnam announced it would widen the dong’s trading band on Wednesday to further weaken the Dong in response to the comparable shrinkage by China, its biggest trading partner.
Gold Price Rises After Currency Wars Reignite As China Devalues
Submitted by GoldCore on 08/12/2015 09:44 -0500China surprised global markets yesterday by devaluing its currency on concerns about sharply decelerating Chinese economy
Are The Saudis Winning? US Crude Production Slows To Lowest In 3 Months
Submitted by Tyler Durden on 08/12/2015 09:38 -0500US crude production declined 0.74% last week to its lowest level since May 15th. US crude inventories dropped for the 4th week of the last 5, but considerably less than expected.
Dow Gives Up Post-QE3 Gains, S&P Breaks Below Key Technical Support
Submitted by Tyler Durden on 08/12/2015 09:22 -0500The S&P 500 has once again broken, rather aggressively, below its 200-day moving average and is headed close to unchanged for 2015. The Dow has tumbled 1200 points from its highs and has now broken below the level at the end of QE3... we are gonna need a bigger Fed Balance Sheet...
Be Afraid: This Is The Fed's Last Remaining Strategy
Submitted by Tyler Durden on 08/12/2015 09:14 -0500DUDLEY: HOPEFULLY IN NEAR FUTURE FED ABLE TO RAISE RATES
DAX Crashes After Germany Warns Greek Bailout "Insufficient"
Submitted by Tyler Durden on 08/12/2015 09:07 -0500With the Greek bailout deal now nearly done, all that stands in the way of disbursal is the Greek parliamnent and a predictably incalcitrant Germany which, according to Bild (citing EU sources) has now determined that the new bailout plan is "insufficient."
Central Banks Are Beginning to Lose Control
Submitted by Phoenix Capital Research on 08/12/2015 08:50 -0500The significance of these developments cannot be overstated. Central Banks will be increasingly acting against one another going forward. There will more surprises and more volatility across the board. Eventually it will culminate in a Crash that will make 2008 look like a picnic.
