Now that 13-F reporting season is over, we have the data to compile who bought, who sold, and what the top holdings of the largest hedge funds are.
- The Fed Is Meeting in April to Talk About June (BBG)
- Global stocks, oil prices climb as investors ready for Fed (Reuters)
- Apple Results to Show How Far iPhone Sales Have Fallen (BBG)
- On Election Eve for five states, Trump rips Cruz and Kasich (Reuters)
- President Xi Jinping’s Most Dangerous Venture Yet: Remaking China’s Military (WSJ)
- Oil's Recovery Inches Higher as 'Fracklog' Awaits Price Trigger (BBG)
- Trump knocks Rubio out of race, Republicans in turmoil (Reuters)
- Fed to Signal Worst Is Over, Hikes Coming: Decision-Day Guide (BBG)
- Four Economists See a Surprise from the Fed This Week (BBG)
- Global Stocks Muted Ahead of Fed Announcement (WSJ)
- Stop-Trump Groups Make One Last Bet on Rubio, and Lose (BBG)
- China's Li Seeks 'Win-Win' for Growth-Reform Plan Analysts Doubt (BBG)
Today Janet Yellen and the FOMC will go back to square one and try to reset global expectations unleashed by the ill-fated December rate "policy mistake" hike, when at 2pm the Fed will announce assessment of the economy, even if not rate hike is expected today. Just like in December the Fed will be forced to telegraph that it is hiking rates as a signal of a strengthening US, and global, economy where "risks are balanced" and hope that the subsequent global reaction will not be a rerun of what happened in January and February when confusion about the Fed's intentions led to a global market rout.
While algos patiently await the only thing that matters for US stocks today which is Janet Yellen's testimony before Congress. expected to be released at 8:30 am (and previewed here), the rest of the world this morning is a hot mess of schizophrenic highs and lows.
- Stocks cautious after rocky China data, bonds fly high (Reuters)
- Oil falls on China data, fading prospect of OPEC action (Reuters)
- Republican Vote in Iowa Caucus Hinges on Newcomer Turnout (WSJ)
- When Trump tells supporters not to donate, they mostly listen (Reuters)
- Goldman Sachs Employees Shift to Rubio as Bush Support Fades (BBG)
- Four Theories on How Oil Has Hypnotized the Global Stock Market (BBG)
- Stocks, oil soar as Draghi the dove tames global bears (Reuters)
- Massive snowstorm poised to wallop U.S. East Coast (Reuters)
- Oil Rises in Biggest Rally Since August Amid Volatility Surge (BBG)
- Nikkei spikes more than 900 points after rebounds overseas (Japan Times)
- China's Working-Age Population Sees Biggest-Ever Decline (WSJ)
- Oil Is `Trade of the Year' for Citigroup After Iran Export Surge (BBG)
- U.S. Payment of $1.7 Billion to Iran Raises Questions of Ransom (WSJ)
With China now "murdering" Yuan shorts, markets are content that the Chinese debacle seems to be contained if only for a while, and so the attention of both traders and algos alike has focused on oil, which earlier in the session dragged global equities lower as it dropped by 3%, just shy of the $30 level, a new 11 year low, before staging another dramatic rebound in minutes, wiping out all losses in the aftermath of what appears to have been a deadly suicide bomber terrorist explosion on a square the middle of Istanbul's historic district.
The half-life of the latest "market supporting" intervention by the Chinese government: just about 12 hours.
As go the markets, so go the movies. According to the WSJ, Hollywood just had its biggest-ever year at the box office in 2015, collecting $11.1 billion in ticket sales, up 7% from the previous year and surpassing the record of $10.92 billion set in 2013. All of the growth, however, occurred at the top of the heap, or in other words, 2015 was a record year "thanks to a handful of blockbusters that left a whole lot of duds in the dust." In other words, just like in the stock market, a record high portion of Hollywood "gains", or rather box office ticket sales, came from just five movies.
Comcast is penny wise, pound foolish.
For those eager to cut to the chase and curious if overnight we have had another standard USDJPY ramp levitating US equity futures on low volume, the answer is yes. And since the USDJPY carry was patient enough, it managed to trigger the 2100 ES stops and as of this moment the futures were comfortably on the politically-correct side of 2100.
Global Rally Continues After PBOC "Unintentionally" Sparks Market Surge With Stale News, Largest 2015 IPO PricesSubmitted by Tyler Durden on 11/04/2015 07:59 -0400
The most entertaining overnight story has to do with the latest farcical development in the Chinese "market" when just after open, it was reported that PBOC Governor Zhou said a trading link with Shenzhen will start this year which promptly sent all Chinese brokerages soaring, and the Shanghai Composite jumped over 3%. And then, out of the blue, the PBOC said the undated comments were actually as of May. As Bloomberg put it, "China’s central bank unintentionally sparked a surge in the nation’s stock market by publishing five-month-old comments from governor Zhou Xiaochuan that said a link between exchanges in Shenzhen and Hong Kong would start in 2015."
Based on the overnight market prints which are an oddly reddish shade of green, it took algos about 12 hours to realize that the reason they soared for most of October, namely hopes of an easier Fed which were launched with the terrible September jobs report and continued with increasingly worse US economic report in the past month, can not be the same reason they also soared yesterday after the announcement of a more hawkish than expected Fed statement which envisioned a stronger US economy and a removal of foreign considerations, which even more curiously took place on even worse data than the Fed's far more dovish September statement.