Copper

Global Stocks Crash After Spiraling Chinese Devaluation Unleashes Worldwide Chaos And Selling

Once China set the Yuan fixing some 0.5% lower, the biggest drop since the August devaluation, all hell broke loose and unleashed a global selling panic after China's stock market was promptly shut down less than 30 minutes into trading, then European shares dropped the most in more than 4 months as Asian equities plunges, as did US stock futures, the dollar weakened against the euro and the yen; crude plunged to fresh 12 year lows. Gold rose.

Frontrunning: January 6

  • Obama, wiping tears, makes new push to tighten gun rules (Reuters)
  • Global stocks hit by China worries, North Korea nuclear test (Reuters)
  • Oil hits 11-year low, Saudi-Iran row cuts chances of output restraint (Reuters)
  • North Korea says successfully conducts first H-bomb test (Reuters)
  • Valeant Planning to Appoint New Leader as CEO Remains Hospitalized (WSJ)
  • Treasuries Extend 2016 Winning Start With Growth Outlook Clouded (BBG)

Visualizing How The Global Economy Played Out In 2015

Many people start a new year with renewed optimism. However, "New Year, Same Problems" is the meme of 2016... and recent trading has dashed some of that optimistic 'This time it's different' hope.

Stocks Resume Rout After Massive Chinese Intervention Fails To Lift Shanghai, Calm Traders

After yesterday's historic -6.9% rout in the Shanghai Composite, which saw the first new marketwide circuit breaker trading halt applied to Chinese stocks (on its first day of operation), many were wondering if the Chinese government would intervene in both the once again imploding stock market, as well as China's plunging and rapidly devaluing currency. And, after the SHCOMP opened down -3%, the government did not disappoint and promptly intervened in both the Yuan as well as the stock market, however with very mixed results which global stocks took a sign that the "national team" is no longer focused solely on stocks, and have resumed selling for a second consecutive day. 

What Really Happened In 2015, And What Is Coming In 2016...

A lot of people were expecting some really great things to happen in 2015, but most of them did not happen.  But what did happen? A global financial crisis began during the second half of 2015 threatens to greatly accelerate as we enter 2016. This is what the early stages of a financial crisis look like, and the worst is yet to come.

The Best And Worst Performing Assets Of 2015

With markets wrapped up for 2015 now, reviewing the performance of asset classes last year shows that it was one where negative asset class returns were aplenty, while those finishing in positive territory were few and far between. Indeed, of the 42 assets we monitor in Figure 5, just 9 finished with a positive return in Dollar-adjusted terms over the full year.  At the other end of the scale there were some notable losers.

 

Derailed? What Rail Traffic Tells Us About The U.S. Economy

Rail volumes provides a mixed picture of the US economy at this point: oil & gas and mining-related sectors are taking a real beating, some consumer sectors seem to be holding up and there are signs of weakness in the housing sector. 2016 should witness some type of a resolution here.

2015 Year In Review: "Terminal Phase" Excess & Peak Cognitive Dissonance

Important pillars of the bull case evaporated throughout 2015. Global price pressures weakened, the global Credit backdrop deteriorated and the global economy decelerated. The huge bets on central bank policies left markets at high risk for abrupt reversals and trade unwinds – 2015 The Year of the Erratic Crowded Trade. Indeed, a global bear market commenced yet most remain bullish. Serious and objective analysts would view this ominously.

Norwegian Car-B-Q: Tesla Model S Bursts Into Flames, Burns To A Crisp While Charging

The Norwegian owner of a Tesla Model S found an unexpected f(i)ringe benefit during a cold Friday afternoon when shortly after he had parked his luxury electric car at a supercharging station in Gjerstad, and left, he realized the car could serve as a very quick and efficient, if quite toxic, source of heating for the cold Scandinavian country, when the Model S spontaneously burst into flames.

Now Comes The Great Unwind - How Evaporating Commodity Wealth Will Slam The Casino

The unfolding correction of the visible excesses of the credit inflation - such as overinvestment and malinvestment - will destroy incomes and profits; the Great Unwind of the less visible effects, such as the sovereign wealth fund liquidations, are a giant pin aimed squarely at the monumental worldwide bubbles in stock, bonds and real estate.