Yuan

Global Stocks Drop On Poor Earnings, Bond "Bloodbath" Ahead Of US Q3 GDP

S&P futures and Asian stocks were little changed while European shares fell as the global bonds sell-off deepened on speculation major central banks are moving closer to reining in stimulus, while stocks retreated after disappointing results from companies including Amazon.com and AB InBev.

RBC: "That Is VaR Crushing DV01 Destruction At Its Finest"

The absolute focus overnight / today is “core” macro though, as global developed market rates are being re-priced “risk manager style,” particularly with EGBs under MAJOR pressure as the buyside is caught wrong-footed (as I type, Slovak 10Y +7.2bps, Denmark 30Y +9.4bps, Netherlands 30Y +9.9bps, Finland 30Y +10.1bps, German 30Y +9.9bps, Austria 30Y +9.3bps…and even front-end seeing outsized moves with the Belgian 2Y +2.2bps).  That is VaR crushing DV01 destruction at its finest. 

Bitcoin Soars As China Launches Crackdown On Wealth-Management Products

The most recent burst in bitcoin activity, which sent it surging by over $20 overnight, has little to do with any moves in the official Chinese currency, which recently rebounded modestly tracking the recent dip in the dollar, and is likely attributable to a long overdue crackdown on China's Wealth-management products, a key component of China’s "shadow banking" system.

As China Liquidates US Treasuries, It is "Gobbling" Up Japanese Government Bonds

China is on a shopping spree, and has been "gobbling" up Japanese government bonds, adding that Beijing bought close to a net 9 trillion yen ($86.6 billion) worth of JGBs in the January-August period, more than tripling the amount from the same period last year. Incidentally that's almost equivalent to the number of US Treasurys sold by China.

US Futures, Global Stocks, Metals Rise On Economic Confidence, Upbeat Earnings

European, Asian stocks and S&P futures are all up again in early trading, a repeat of the Monday session, buoyed by a generally upbeat corporate earnings season, rising economic confidence and signs of improvement in the world’s biggest economies. After Charles Evans' hawkish comments on Monday, the market is now pricing in a 71% chance of a rate increase this year, up from 68% last week.