Australia

First The UK, Then Scotland... Then Texas?

That didn't take long. Only hours after the final results came in for a British exit from the EU, political leaders in Scotland are talking about renewing their drive to secede from the United Kingdom. While secession of American states is often dismissed as absurd, there are few reasons to believe that a state like Texas - to name just one example - could not immediately transition from state to nation-state. With a large economy, port cities, oil, and easy access to European, Latin American, and even Asian economies by sea, economics arguments against such a separation fall flat.

Voting Begin: Stocks Surge, Sterling Hits 2016 Highs, Futures Flirt With 2100

On the day voting for the UK referendum finally began, what started off as a trading session with a modest upward bias, promptly turned into a buying orgy in painfully illiquid markets shortly after Europe opened as an influx of buy orders pushed European stocks 2% higher, propelled by cable which was above 1.49 for the first time since December and USDJPY climbing over 1.05 in sympathy, following the release of the final Ipsos Mori poll which showed Remain at 52% to 48% for leave.

Gartman Flip-flops Again: 'The Trend Is, Has Been And Shall Be Upward"

"The trend is, has been and likely shall continue to be upward. TINA rules the day; TINA is “Queen.” TINA it is then. It will end when it ends and it will eventually end badly of course for such things always do.  But between now and that hundred years the trend for interest rates is lower and the trend for equity prices is higher."

Eerie Calm Across Markets One Day Before The Main Event: Asia, Europe, US Unchanged

There is an eerie quiet across markets, one day before the year's main risk event: with the UK referendum vote starting in less than 24 hours and results due out shortly after, it is as if even the algos have stopped frontrunning other algos, in a market so thin and illiquid even the smallest order can result in a gap, either higher or lower. As a result, European, Asian stocks and S&P futures are little changed ahead of Thursday, with the Stoxx Europe 600 Index swinging between gains and losses more than five times so far today.

Are You Listening, Canada: Australia Slaps Chinese Home Buyers With New Taxes

In a move that we strongly urge Canada (and every other nation which is the end-target of Chinese hot money laundering) to evaluate, Sydney announced it would impose new taxes on foreigners buying homes as concerns grow that a flood of mostly Chinese investors is crowding out locals and killing the “Great Australian Dream” of owning property.

Global Stocks Rebound As Brexit Odds Decline Following Tragic Death Of UK Lawmaker

While it may very well not last and all of yesterday's gains could evaporate instantly if the Brexit vote is set to take place as scheduled, all 10 industry groups in the MSCI All-Country World Index advanced, with the index rising 0.7% trimming the week’s drop 1.6%. The Stoxx Europe 600 Index rose 1.4%. Futures on the S&P 500 were little changed, after equities Thursday snapped their longest losing streak since February. . Oil rose, paring its biggest weekly decline in more than two months. Bond yields around the globe fell.

The Notorious 120% LTV Mortgage Is Back

With China desperate to reflate its once-burst housing bubble (as every other bubble including stocks, bonds, and yes - even rebar - has burst) and with no regulators to oversee the insanity in the local housing market, it means that the infamous 120% LTV mortgage has finally resurfaced. As SCMP reports, Sun Hung Kai Properties Ltd., Hong Kong’s largest developer surprised the market on Wednesday by offering an unprecedented home loan worth as much as 120% of the flat value without the need to submit income proof in order to woo buyers for its new project in Yuen Long.

Global Stocks Continue To Plunge As Central Banks Disappoint, Brexit Looms

Futures on the S&P 500 slipped 0.3%, as U.S. equities are on track to extend losses for a sixth day.  Europe's Stoxx 600 fell to a four-month low, sliding 1% for its sixth decline in seven days, and U.S. crude retreated for a sixth day in the longest losing streak since February. Bond yields sank to records in Germany, Australia after Japan as Federal Reserve Chair Janet Yellen said next week’s U.K. vote on European Union membership was a factor in the decision to hold interest rates steady. The Yen surged more than 2% as the Bank of Japan refrained from adding any new stimulus,

Something Unexpected Emerges In China's Latest Money And Credit Data

China's corporate bond market, one of the fastest growing sources of cheap credit, did something in May it hasn't done in in six years: it shrank.  And then there was the record contraction in banker's acceptance bills, a pseudo currency used by companies for payments that have been the subject of several instances of massive fraud. Hopes for a big credit push are again being dashed.

Brexit Odds Hit Record High After Biggest UK Newspaper Urges Brits To Vote "Leave"

This weekend saw the 'upper/middle-class' Telegraph newspaper break ranks with the British establishment and suggest Brexit is the way to go. Today, we see more mainstream media mutiny as the 'working-class' Sun newspaper (owned by Murdoch and the largest UK newspaper) "urges everyone to vote Leave. We must set ourselves free from dictatorial Brussels," in the looming EU Referendum. While polls have been steadily increasing in Brexit likelihood, many have clung to the hope that bookies odds remained lower... until now, as Ladbrokes just reported Brexit chances hit an all-time high of 43%.

Soaring Brexit Fears Spark Global Flight To Safety, Send 10 Year Bunds Tumbling Below 0%

The UK EU referendum is suddenly totally dominant in financial markets. The increased focus comes as the leave campaign has gathered steam as 4 polls yesterday afternoon/evening put the 'leave' campaign ahead. As a result of the continued global scramble for safety, German 10Y bunds finally dropped below 0% for the first time ever, while global risk assets are red around the globe.