Asian shares and oil are lower, European shares are little changed, and S&P futures are fractionally in the red after gaining for most of the overnight session, perhaps troubled by warnings by two Fed presidents who warned that markets and valuations appear frothy, and the Federal Reserve may have to raise rates more times than currently forecast.
With analysts noting that markets are "taking the Fed's tightening policy in their stride," demand for emerging-markets debt is so strong that one of Asia's poorest nations is mulling a debut dollar-bond sale...
While fuel supplies in the country with the world's largest proven oil reserves had continued flowing despite monetary collapse and hyperinflation, a domestic oil industry in turmoil and a deepening economic collapse under President Nicolas Maduro, that changed last Wednesday when Venezuelans found themselves waiting in lines for gasoline.
The cold truth is all these institutional-state-cartel "solutions" serve the few at the expense of the many. This is not a side-effect; it is the intended output of these "solutions." In other words, these "solutions" work great for the parasitic few at the top skimming all the wealth, power and income, at the expense of the exploited many and the stability of the system as a whole.
The Euro and European bond yields tumbled this morning after Reuters reported 'sources' saying the ECB is wary of fresh policy change (i.e. the expected quasi-tightening) before the June meeting, because it is worried about bond yield spikes.
Brexit day has finally arrived, and despite this major "risk event", European and Asian stocks are trading mixed, while S&P futures are just fractionally lower as a bounce on optimism over the American economy appears to have fizzled and President Trump continues to struggle to pass his legislative agenda. The pound first dipped then rose as the U.K. is set to begin its life outside the EU.
"Rising markets, an unwillingness to acknowledge fat tails (unlikely knowns), and the inability to model Black Swans (unknown unknowns) have concentrated popular wealth into a narrowly distributed range of highly vulnerable assets and investment strategies."
Confirming just two more rate hikes in 2017 and plenty of uncertainty and fear over productivity growth, a 'dovish' Stanley Fischer sparked an instant reaction in USDJPY (spiked above 111) and Gold (slammed below $1250) as stocks moved to the day's highs and bond yields rose (30Y over 3.00%)...
A 24-year-old computer contractor from Hamden was arrested on the charge of stealing confidential documents from the world's biggest and most secretive hedge fund Bridgewater Associates, according to police.
"Don’t let anyone try to tell you that stock-market pullbacks, including modest ones, are something investors and policy makers can now handle with aplomb. You can calculate financial-conditions indices with all sorts of back-fitted weightings but when stocks go down, everyone still goes into “The sky is falling” mode."
“Equity market participants have taken a look at the lower yields and weaker dollar and decided that since absurdly low rates are the elixir that the equity bull market lives on, they might as ‘buy the dip’ yet again” Kit Juckes, a strategist at Societe Generale wrote.