Greece

Bill Blain: "If You Want To See Inflation In Action, Then Financial Asset Prices Are Screaming “Danger, Danger"

"If you don’t believe there is inflation stare deep into your Bloomberg screens and call up the price of any and all financial assets; bonds or stocks. If you want to see inflation in action, then Financial Asset Prices are screaming “Danger, Danger Will Robinson, Danger!” If you want inflation – there it is. Methinks all these clever people aren’t seeing the inflationary Forest because of the financial asset trees."

"If You Blinked, You Missed The Euro Correction"

"The euro zone has survived the worst that could be thrown at it and the narrative of the currency union breaking up is stale. Euro implied volatility has slumped as a result – it’s now perceived to be the third-most stable G10 currency, after CAD and CHF, versus the dollar based on such metrics. The euro can be a haven currency again."

Quiet Month End Markets Hide "Below The Surface" Fireworks

It has been another quiet session for global equity markets, with S&P futures flat, as are European and Asian stocks, which is perhaps odd, as there was quite a bit of newsflow and, in the case of China, outright fireworks.

NATO Recoils From Trump Spending Salvos

Trump’s abrasive attitude to other NATO members last week brings out the real nature of the US relationship. The so-called alliance is really just a spending vehicle for the American economy. In these austere global times, such American bullying will only chafe on the Europeans. This will in turn reinforce calls already underway for an independent EU defense pact, separate from NATO, and possibly led by Germany and France.

Greek, Italian Risks Weigh On European, Global Markets; Oil, Gold Slide

Tuesday's session started off on the back foot, with the Euro first sliding on Draghi's dovish comments before Europarliament on Monday coupled with a Bild report late on Monday according to which Greece was prepared to forego its next debt payment if not relief is offered by creditors, pushing European stocks lower as much as -0.6%. However the initial weakness reversed after Greece denied the Bild report. S&P futures are fractionally lower

Euro Slides After Greece Hints At Default

EURUSD is sliding in early Asian trading after Greece's government is reportedly planning to forego its next bailout payment (of around EUR7bn) if no debt relief is offered by creditors (thus leaving it likely to default on its next round of repayments).

Kushner Role In White House Suddenly Unclear; May "Return To Private Life"

According to a pair of weekend reports from the WaPo and NYT, Kushner's fate in the White House is suddenly in question, and he has told friends that "he and his wife have made no long-term commitment to remain by Mr. Trump’s side, saying they would review every six months whether to return to private life in New York."

China Downgrade Forgotten As Asia Closes Higher, Futures Flat Ahead Of Fed Minutes

Not even last night's Moody's credit downgrade of China - the first since 1989 - could dent the global stock rally which has pushed global stock prices to all time highs. After initially sliding, regional stocks and emerging Asian currencies pared early losses following the unexpected downgrade of China, taking their cue from the "sudden reversal" of the Shanghai Composite Index, which some speculated saw the latest intervention of the "national team."

Europe's Blinkered Leaders: Shielding Themselves From Reality Again

When the G7 heads of state arrive in Taormina, Sicily, for the G7 meeting on May 26, they will find themselves in an embellished, picture-postcard version of European reality. Italy, the host of the G7 meeting, has announced that it will close all harbors on the island to ships that arrive with migrants ( mainly from Libya) for the duration of the two-day meeting.