Yen

Frontrunning: June 20

  • Britain's rival EU camps resume campaign as polls show momentum for 'In' (Reuters)
  • Britain's 'In' campaign wins more support, buoys markets (Reuters)
  • Brexit Campaigners Are Deceiving Voters, Cameron Says (BBG)
  • German trade body lowers export forecast: 'Brexit is poison' (Reuters)
  • Beyond the Turmoil, Central Bankers Dread Brexit’s Shadow (BBG)

Global Stocks Soar, Pound Surges Most Since 2008 As Brexit Odds Tumble

Global equities rallied and the pound strengthened the most since 2008, soaring by 300 pips since the Friday close as polls signaled the campaign for the U.K to stay in the European Union was gaining momentum. Haven assets including the yen, U.S. Treasuries and gold slumped. The Stoxx Europe 600 Index surged by the most since February as the MSCI Asia Pacific Index advanced with S&P 500 futures.  Haven assets including the yen, U.S. Treasuries and gold slumped.

Japanese Finance Minister Reminds Elderly "Hurry Up & Die"

Everyone knows that Japan, whose population is now declining for the first time in its history, sold more adult than baby diapers for the first time in 2012, and is "older" than any nation in the world, has a "demographic problem." What few may know, however, is that it also has a secret plan to fix said "demographic problem" - a solution that would make Hitler, Goebbels and Stalin proud.

Global Stocks Rebound As Brexit Odds Decline Following Tragic Death Of UK Lawmaker

While it may very well not last and all of yesterday's gains could evaporate instantly if the Brexit vote is set to take place as scheduled, all 10 industry groups in the MSCI All-Country World Index advanced, with the index rising 0.7% trimming the week’s drop 1.6%. The Stoxx Europe 600 Index rose 1.4%. Futures on the S&P 500 were little changed, after equities Thursday snapped their longest losing streak since February. . Oil rose, paring its biggest weekly decline in more than two months. Bond yields around the globe fell.

Global Stocks Continue To Plunge As Central Banks Disappoint, Brexit Looms

Futures on the S&P 500 slipped 0.3%, as U.S. equities are on track to extend losses for a sixth day.  Europe's Stoxx 600 fell to a four-month low, sliding 1% for its sixth decline in seven days, and U.S. crude retreated for a sixth day in the longest losing streak since February. Bond yields sank to records in Germany, Australia after Japan as Federal Reserve Chair Janet Yellen said next week’s U.K. vote on European Union membership was a factor in the decision to hold interest rates steady. The Yen surged more than 2% as the Bank of Japan refrained from adding any new stimulus,

USDJPY, Nikkei Plunge As BoJ Disappoints With "No Change"

While only 5 of 40 economists expected a rate cut and only 7 of 39 any additional easing, hopes were rife for some additional ETF buying or hints at further stock purchasing by The Bank of Japan... but no. USDJPY immediatley plunged to a 104 handle and Nikkei 225 crashed 300 points.

Currency-nado: Yen, Yuan Surge; Gold Tops $1300; Bitcoin Spikes To 28-Month Highs

The US Dollar continues to slide (after bouncing off Fed statement plunge lows), as it appears a rush to other 'currencies' is under way. USDJPY is plumbing new depths beyond Oct 2014's lows (before the end of QE3 and start of QQE2), offshore Yuan is rallying (back below 6.60), gold just hit $1300 (pushing May highs back to Jan 2015 highs), and finally Bitcoin is spiking as China opens once more (now above $700), its highest since Feb 2014. Japanese bonds are at new record low yields (and Treasuries are pushing lower with 10Y at 1.55% near Feb's flash-crash lows).

Argentina's Former Public Works Secretary Caught Burying $8.5 Million

On Tuesday, the former public works secretary under Kirchner, Jose Lopez, was arrested after he was caught burying bags containing an estimated $8.5 million in cash in the grounds of a convent near Buenos Aires. Police were tipped off by a neighbor who saw Lopez taking bags out of his car in the middle of the night. Lopez, who currently serves as a lawmaker in the Mercosur parliament, was found with an assault rifle and six bags containing dollars, euros, yen, and Qatari riyal Bloomberg reports.

Gundlach: "Central Banks Are Losing Control" - His Latest Presentation

"Central banks are losing control and they don't know what to do ... just like the Republican establishment and Donald Trump.... The Fed is confused and their confusion spills into investor psychology," said Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine. "The Fed changes its tone so frequently, it seems every other week the message is different. They’ve turned into the 'Zombie Fed.' They say the meeting this week is 'live,' but investors all know it isn't at all."

All Eyes On Yellen As Global Stocks Rebound Despite Brexit Fears, Record Low Yields

US equity index futures and global stocks rebounded for the first time in 6 days, ahead of Federal Reserve Chair Janet Yellen’s remarks, while Chinese manipulation prevented a selloff in Chinese stocks when MSCI refused to add the country to its EM index due to fears about... manipulation. Sterling has rebounded despite ongoing Brexit doom and gloom. Oil is the only key commodity that has failed to stage a modest rebound, while gold is down alongside the dollar, just because.

JPM's Quant Guru Unveils The $1 Trillion Catalyst That Will Unleash The Next Market In Turmoil

"About ~$1,000Bn of S&P 500 options expire this week. The gamma imbalance turned towards puts yesterday ($9bn per 1% currently), and this will likely push realized volatility higher near term. Post expiry, clients are likely to roll put strikes higher, which will also be supportive of higher volatility. Yesterday’s large move on the VIX indicates short gamma exposure of dealers on VIX products as well." - Marko Kolanovic

One Day After Warning Of World War III, Gartman Turns "Marginally Net Long"

"As for our own positions in our retirement fund, for the  year-to-date we are +3.3% and are thus beating the year-to- date returns of both our International Index and of the S&P. We are marginally net long as of last night’s close although we became marginally net less so early in the session as we added a bit to our short derivatives position."

Soaring Brexit Fears Spark Global Flight To Safety, Send 10 Year Bunds Tumbling Below 0%

The UK EU referendum is suddenly totally dominant in financial markets. The increased focus comes as the leave campaign has gathered steam as 4 polls yesterday afternoon/evening put the 'leave' campaign ahead. As a result of the continued global scramble for safety, German 10Y bunds finally dropped below 0% for the first time ever, while global risk assets are red around the globe.