Yuan

Gold Surges, Global Stocks Slide As "Super Thursday" Risks Loom

With traders realizing that the "Thursday Turmoil Trifecta" looms, world stocks dropped and safe-haven assets rose as investors focused on the growing tension in the Middle East, while caution spread across markets in a week full of risk events including James Comey’s congressional testimony to the ECB’s policy meeting and Britain’s increasingly uncertain election, all in the span of 24 hours. As a result, European and Asian stocks as well as S&P futures all fell, while gold, yen and Treasuries gained.

The Answer To El-Erian's Quandary: It's "A Perfect Storm" Melt Up

"There seems to be a perfect storm of so so growth and falling inflation, enough for the Fed to tighten modestly but being at risk of over doing it.... the easing in our financial conditions index is one of the most extremes on record, thanks to Fed tightening!" 

Reuters Goes To China, Discovers "Ghost Collateral"

"The first time I went, I saw the steel,” recalled Wang, an attorney at Beijing DHH Law Firm, which represents the Shanghai branch of CITIC. "Afterwards, the banker got in contact with me and said, ‘The pledged assets are no longer there"

RBC Warns Equity Markets Have Entered The 'FOMO' Stage

It’s risk-parity heaven right now, notes RBC's head of cross-asset strategy Charlie McElligott, with global equities (developed and EM) AND fixed-income all continuing their torrid rallies, but McElligott warns this is a classic "from worst to first" PM-grabbing into a new "Fear Of Missing Out" stage of the equities-rally.

Frontrunning: June 2

  • Strong U.S. job growth expected in May; wage rise seen moderate (Reuters)
  • Trump’s Paris Exit Leaves Him Isolated From C-Suites to Capitals (BBG)
  • Critics lament Trump climate move, supporters seek new deal (Reuters)
  • Musk, Iger to quit Trump advisory councils after Paris accord decision (Reuters)
  • Yuan Forecasters Getting It Wrong as China Jolts Markets (BBG)

Stocks Set For New All-Time Highs, Nikkei Rises Above 20,000, Oil Slides

Stocks are set for new all time highs with S&P futures up 0.2%, boosted by green markets across Europe and Asia, where the Nikkei rose above 20,000 for the first time since 2015. World stocks are set for new record highs, having already gained 11% so far this year, ahead of today's US nonfarm payrolls which are expected to increase by 185,000 jobs after surging 211,000 in April.

Global Stocks Rise As Oil Rebounds; Yuan Soars

S&P futures are little changed this morning, while Asian shares rise and European stocks (+0.5%) are poised to snap a five-day losing streak amid a broad-based rally. The pound declined as better-than-expected manufacturing data failed to offset political risk before the impending election, while crude oil gained.

China Fireworks Continue With Yuan's Biggest 4-Day Rally In 12 Years

China's unprecedented crackdown against Yuan shorts continued overnight, when the FX market saw even more fireworks as the onshore yuan headed for the biggest four-day advance since 2005 following the strongest central bank fixing since January and amid ongoing speculation China's central bank is trying to crush shorts while China's big banks continue to limit offshore liquidity.