Archive - Jul 28, 2014 - Story

• The market in one sentence: Buying on Dips Pays Most in Five Years as Stocks Rebound (BBG)
• Europe subdued, Russia shares tumble on new sanctions (Reuters)
• Chinese Data Don’t Add Up (WSJ)
• Argentine Default Drama Nears Critical Stage (WSJ)
• Global Pressure Mounts on Israel to End Gaza Fighting (BBG)
• Ukraine troops advance as experts renew attempt to reach crash site (Reuters)
• Prospects Brighten for Republicans to Reclaim a Senate Majority (WSJ)
• Europe’s banking union faces legal challenge in Germany (FT)
• Investors Bet on China's Large Property Developers (WSJ)
• Hague court orders Russia to pay over $50 billion in Yukos case (Reuters)

There has been little in term of tier 1 data releases to drive the price action so far in the overnight session which means participants focused on the upcoming US related risk events including the Fed, Q2 GDP and July Payrolls. This, combined with WSJ article by Fed’s Fisher who opined that the FOMC should consider tapering the reinvestment of maturing securities and begin shrinking the Fed’s balance sheet (note that Fisher’s opinion piece is written based on a speech he gave on July 16th) meant that USTs came under pressure overnight in Asia and in Europe this morning. There has been little notable equity futures action (for now: the USDJPY algo team gave it a good ramp attempt just before Europe open, and will repeat just around the US open despite Standard Chartered major cut to its USDJPY forecast from 110 to 106 overnight), although we expect that to change since today is the day when Tuesday frontrunning takes place with full force. We expect equities to completely ignore the ongoing deterioration in Ukraine and the imminent release of EU's own sanctions against Russia, as well as what is now shaping up as an Argentina default on July 30.