Equity Markets

Global Stocks Drop, US Futures Down As Dollar Rebound Halts Longest Oil Rally In Years

European, Asian stocks and S&P futures all fell in another quiet, low-volume early session. With oil entering a bull market yesterday, and set for its longest run of gains in 4 years after, overnight crude stumbled, and reversed early gains, falling for the first time in seven days driven by rebound in the dollar which gained versus all G-10 currencies with commodity currencies underperforming.

What? Me Worry? Volatility & The Election

2016 is an anomaly. Going into one of the more unpredictable elections, implied volatility is trading at a discount to realized volatility. Strangely, the equity markets trade as if the election results, be it a Clinton or Trump victory, are inconsequential for share prices. That stance is greatly at odds with what many of us think, as well as the palpable anxiety voiced by many traditional and social media outlets.

European Stocks Drop, Futures Flat As Rising Dollar Pressures Oil, EMs: All Eyes On The Fed Minutes

European stocks are down led by tech, chemicals, alongside EM stocks which retreated from near a one-year high and oil fell for the first time in a week after hawkish comments from Federal Reserve officials revived bets on U.S. interest rate rises this year, and pushed the dollar higher from 7 week lows ahead of today's Fed Minutes. S&P 500 futures were little changed following yesterday's drop from record highs

An Unexpected "Biggest Tail Risk" Emerges Within The Investing Community

According to the latest FMS, the biggest tail risk is no longer Renewed China Devaluation, as was the case in July, followed by "a crash in the European bond market." Instead the biggest concern cited by some 22% of respondents in the month of August was "EU disintegration."

Tumbling Dollar Sends USDJPY Under 100, Oil Over $46 As Gold Spikes; Futures Flat

Overnight, John Williams' latest uberdovish paper "Monetary Policy in a Low R-star World", which we profiled yesterday, and which suggests lower rates for far longer, made the rounds and has led to a steep 0.8% drop in the Bloomberg Dollar spot Index, which sank to its weakest since June while the yen strengthened 1.2 percent, slipping briefly below 100 against the greenback for the first time since June 24, pushing oil and gold higher, and Asian shares lower.

"Nothing Adds Up"

There’s a new feature to the Anything-Goes-and-Nothing-Matters economy: Nothing-Adds-Up... The fecklessness and stupidity of the elites has been epic, sacrificing everything to maintain the illusion of normality.

Global Stocks Rise, US Futures Near All Time Highs As Flood Into Emerging Markets Continues

European shares advanced, with gains in automakers  helping Germany’s benchmark DAX Index turn positive for the year for the first time. Stocks rose around the world, led by emerging-markets, as oil climbed further after its best week since April and traders pushed back bets on higher U.S. interest rates. S&P futures advance and Asian stocks little changed as rising oil prices bolstered investor sentiment.

One Year Later, This Is What Would Prompt Another "Risk-Parity" Blow Up

Last week’s sharp sell-off in JGBs following the BoJ’s decision not to cut rates, renewed investor fears of forced selling by risk parity funds. This was accentuated as it took place roughly one year after last August's notable risk-parity sharp, market-moving deleveraging. So under what conditions could a similar risk-parity blow up take place again? Here is the answer.

US Futures Rebound, European Stocks Higher As Oil Rises

The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.

Even Reuters Gets It: "Money-Printing Has Pushed Stocks Out Of Kilter With Economic Reality"

It appears that the world's central-scammers have finally gone too far. In a shockingly Zero-Hedge-ian statement, Reuters is forced to admit that "spooked by the end of a 30-year bond bull run and bouts of money printing which have pushed stock values out of kilter with economic reality," high-profile investors are turning their backs on financial assets and favoring real assets.

US Futures Flat; Bonds Rise, Dollar And Oil Slide Over US Productivity Collapse Fears

Following yesterday's muted action which saw the S&P500 close unchanged, it has been more of the same listless trading overnight, with US equity index futures little changed as the Nikkei fell on the back of a stronger Yen, while government bonds rose and European stocks reversed early gains following the BOE failed bond monetization operation. Crude oil dropped for a second day after Saudi Arabia told OPEC that it pumped a record 10.67 million barrels of oil a day,