• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

BOE

Tyler Durden's picture

The Fed's Long Awaited Decision Day Arrives, And Chinese Stocks Wipe Out In The Last 15 Minutes





The long awaited day is finally here by which we, of course, mean the day when nobody has any idea what the Fed will do, the Fed included. Putting today in perspective, there have been just about 700 rate cuts globally in the 3,367 days since the last Fed rate hike on June 29, 2006, while central banks have bought $15 trillion in assets, and vast portions of the world are now in negative interest rate territory.

 
Tyler Durden's picture

China Plunge Protectors Unleash Berserk Buying Spree In Last Hour Of Trading As Fed Meeting Begins





Ffor whatever reason starting in the last hour of trading and continuing until the close, the Shanghai Composite - after trading largely unchanged - went from red on the day to up 4.9% after hitting 5.9% minutes before the close - the biggest one day surge since March 2009 - and nearly erasing the 6.1% drop from the past two days in just about 60 minutes of trading, providing a solid hour of laughter to bystanders and observers in the process.

 
Tyler Durden's picture

The 20-Year Stock Bubble - Its Origin In Wholesale Money





Faith in the QE world is waning everywhere and with very good reason. If the "wholesale money" eurodollar takeover was instead responsible for the serial asset bubbles of the past two decades, then it would make far more sense to extrapolate stock trends from that starting point rather than the irrelevant and overstated federal funds monkeying. In this context, the panic in 2008 makes perfect sense as it was a total failure of the eurodollar/wholesale system which not only reversed in total the prior bubble levels it crushed the global economy with it.

 
Tyler Durden's picture

Futures Drift Lower In Surprisingly Uneventful Overnight Session





Perhaps after intervening every single day in the past week (remember that FT piece saying the PBOC would no longer directly buy stocks... good times) in either the stock or the FX (both on and offshore) market, China needed a day off; perhaps even the algos got tired of constantly spoofing the E-mini and inciting momentum ignition, but for whatever reason the overnight session has been oddly uneventful, with no ES halts so far, few USDJPY surges (then again those come just before the US open), and even less violent CNY or CNH moves, leading to virtually unchanged markets in Japan (small red) and China (small green). And while the initial tone in Europe has been modestly "risk off", it is nothing in comparison to the massive gyrations that have become a stape in the past few weeks.

 
Tyler Durden's picture

Frontrunning: September 10





  • Compare: S&P 500 Futures Advance After U.S. Stocks Ignored Global Rally (BBG)
  • And contrast: Global Stock Rally Grinds to a Halt (BBG)
  • And be very confused: Global Stocks Lower on U.S. Interest Rate Uncertainty (WSJ)
  • Hilsenrath: Fed Wavers on September Rate Rise (WSJ)
  • Time for more QE: Abe Adviser Says Next Month Good Opportunity for BOJ Easing (BBG)
  • Brazil downgraded to junk rating by S&P, deepening woes (Reuters)
  • Kiwi dollar tumbles after New Zealand cuts interest rates (Reuters)
 
Tyler Durden's picture

Futures Surge Overnight As Deteriorating Economic Data Unleashes Blur Of Central Bank Interventions And QE Rumors





It has become virtually impossible to differentiate between actual central bank intervention, hopes of central bank intervention, and how the two interplay on what was once the "market" but is now merely the place where money printers duke it out every day in some pretense of price discovery set by those who literally print money.

 
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RANSQUAWK BoE Preview: The minutes release is expected to once again show an 8-1 vote split in favour of keeping rates on hold





• All surveyed analysts expect the Bank of England to keep monetary policy unchanged, with the bank rate at 0.5% and the Asset Purchase Facility at GBP 375bln
• Headline UK CPI printed at 0.1% for July, still well below the BoE’s mandated 2% target
• The accompanying minutes release is expected to once again show an 8-1 vote split in favour of keeping rates on hold

 
Tyler Durden's picture

The Biggest Red Herring In U.S. Shale





Rig productivity and drilling efficiency are red herrings. Although the barrels produced per rig is increasing, the barrels per average producing well is decreasing.

 
Tyler Durden's picture

Chinese Stocks Surge Then Tumble At The Close, Stun Market News Algos; Futures Levitate On Back Of USDJPY





Chinese stocks opened with a bang, and as we previously noted soared higher at the open after China's long 4-day holiday weekend, which however subsequently slowly (but very surely) fizzled, eating away at the hope that the 3-day drop in the Shanghai Composite would finally come to an end following comments from PBOC governor Zhou that the recent rout in Chinese stocks is almost over, and result in a relief rally in Europe and the US. Alas, all that was promptly swept away at the end of trading in China when the Shanghai Composite tumbled at close of trading to confirm just how unpleasant a "death cross" is coupled with loss of central bank control, and to push the Shanghai Composite down 2.5% for the day and 3.4% for the year.

 
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