Capital Markets

Chinese Shares Surge As Beijing "Plunge Protection Team" Boosts Stock Holdings

Overnight, Chinese stocks hit their highest level since December 2015, not due to strong and improving fundamentals, but because China's "National Team", aka Beijing's PPT, in this case state-backed investor China Securities Finance Corp, announced it had boosted its stake across the entire broker sector.

"Pray For A Bear Market": One Bank's "Paradoxical" Advice To Active Managers

"The paradox for active investors is that a correction will almost certainly be associated with outflows from both ETFs and mutual funds. And yet it is precisely such an environment which active managers need in order to be able to outperform. The prolonged bull market which made them so big is also contributing to their undoing; in order to survive, they should be praying for a bear market."

Bizarro World: JGB Yields Slide After BOJ Tapers

On Friday morning, the BOJ again lowered the size of its purchases of long-term JGBS to Y410 billion, a level last seen on January 27 of this year (when Kuroda boosted the amount of monetizable debt to halt a surge in yields) from Y440 billion. And, once again, not only did yields not shoot up, but they declined again.

Inside The "Wildest Commodity Trade" Ever... Just Don't Blink

Chinese trading in futures of ferrosilicon exploded this week, with the average contract on Wednesday held for an estimated 39 minutes, the culmination of an HFT bubble which sent the price of the alloy 25% higher this month alone.

$20 Oil? Forget OPEC, China Controls Oil Prices

U.S. shale has taken a lot of headline space recently as the biggest headwind for oil prices and the highest stumbling block for OPEC’s efforts to prop them up by cutting production. Yet, there may be another factor that could bring down oil prices as soon as next year... China.

Stocks Retrace Tax Bounce As Trump Raises Debt-Ceiling Doubts Overnight

Stocks are rapidly erasing yesterday's "making strides on taxes" gains as Trump's government shutdown threats remind investors just how fragile this whole facade is. The 'risk-off' trade is evident everywhere with Treasury and Bund yields tumbling, gold up, and USDJPY sliding.

Stocks Slide After Trump Threatens Government Shutdown Over Wall Funding, Killing NAFTA

US equity futures reversed early gains to slip as much as 0.3% following a fiery Trump campaign rally speech in which he threatened to shutdown government over border wall funding. Additionally, the yen strengthened, while the Mexican peso weakened 0.2 percent as the president also said he might terminate the North American Free Trade Agreement at some point.