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With American Markets Shut For Second Day, China And Japan Come To Its Rescue
With the stock markets of the "developed world" in limbo for the second straight day and leaderless as New York is paralyzed, and the US was set to be closed for a second straight day, and with futures tumbling to their lowest level in over 2 months overnight, it was time for the East to step up. And step up it did! First, it was China's turn, which while still refusing to ease outright, conducted a massive 395 billion yuan reverse repo - this operation is the biggest on record, according to Bloomberg data going back to 2004, which in turn sent China's seven-day Repo rate plunging the most since January. And because this whopping injection would prove to be promptly internalized, a few short hours later Japan followed with nothing less than QE9! Just around 2 am eastern, the BOJ announced the 9th installment in its neverending monetary farce, when it said it would proceed to monetize an additional Y11 trillion in assets. From BusinessWeek: "The BOJ expanded its asset-purchase program by 11 trillion yen ($138 billion) to 66 trillion yen, the central bank said after a policy meeting today. The range of forecasts in a Bloomberg survey was from 10 trillion yen to 20 trillion yen." Of course, in this bizarro world in which intervention is the only thing left, the latest Japanese QE had an immediate and opposite effect of that planned, sending the USDJPY lower the second it was announced, as the amount announced was disappointing to most who had expected even more easing, and the halflife was for the first time in recorded monetary intervention history, absolute zero! But at least this failed intervention for Japan, helped America, sending ES from 1393, a full 13 ticks higher, where they are now. And so the epic defense of 1400 (and 1.2900 in EURUSD) continues for a 5th straight day!
Behold a central planner's worst nightmare, where you strenghten your currency by printing more of it!
Elsewhere European news were as usual bad. Some of the key headlines out of the lost continent:
- Schaeuble Says Germany Cornered in ‘Absurd’ No-Bail Out Debate
- Cannata Says Ban on Naked Short Sales Already Affecting CDS
- Some Debt Mutualization Tool Needed in Euro Area: Moscovici
- German Oct. Unemployment Rose Twice as Much as Forecast (Source)
- Spain Contracts for Fifth Quarter as Taxes Spur Inflation (Source)
Quick market recap via BBG:
- Spanish 10-yr yield down 1bps to 5.65%
- Italian 10-yr yield down 3bps to 4.98%
- U.K. 10-yr yield up 2bps to 1.81%
- German 10-yr yield up 2bps to 1.47%
- Bund future down 0.1% to 141.56
- BTP future up 0.23% to 107.31
- EUR/USD up 0.37% to $1.2952
- Dollar Index down 0.32% to 79.97
- Sterling spot up 0.19% to $1.6064
- 1-yr euro cross currency basis swap little changed at -26bps
- Stoxx 600 up 0.55% to 270.95
And while the market will hardly sustain its eastern-driven support in light of yesterday's AAPL shocker which is what everyone is aggressively trying to mask and forget, we have at least one more day until stock trading returns and gross wholesale manipulation via the ES finally ends. Until then we have the following events, via SocGen:
The eurozone debt saga continues. Spanish PM Rajoy said that he will seek a bailout when he thinks it's best for Spain and that the most important thing is that mechanism is there. Nevertheless, we are not sure this will be enough. Spain will have to make it known whether or not it will need a bailout. On a positive note, Spain has pretty much met its 2012 borrowing needs; however, on a less positive one, it is likely to miss its 2013 budget deficit targets, resulting in higher-than-expected financing needs next year.
Financing is also at risk in Greece. Although not yet explicit, the consensus seems to be that Greece will need further cash and that a 2-year extension for its current budget deficit targets will not be enough. Whether we are moving towards a third bailout or an OSI is still not clear. Again, the decision may be a political one, and, in particular, the most acceptable one to Germany. Further, Greece probably won't be able to address its financing gap on its own.
Against this backdrop, we will be listening closely to the talks between IMF chief Lagarde and German chancellor Merkel today, as the IMF has tended to take the lead over Germany over the past weeks. However, we do not expect a decision today. Nor do we expect an improvement from the Eurogroup conference call planned on Wednesday. The EU's Juncker has already said that no decisions are likely until the 12 November Eurogroup meeting. Tomorrow's call and the 8 November meeting should thus be brief.
All in all, investors are likely to keep a cautious stance in the very short-term. Friday's NFP is the only event likely to wake up market calls.
Once again, it is all about the 1400 line. If taken out, the Fed, and centrally-planned markets, lose, which in turn a week ahead of the election is simply not allowed.
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Its rhyming again.
Major storm hits financial center,makets collapse.
1987=2012 ?
No worries....we've got China and Japan coming to the rescue.
Do I look nervous to you?
I hope the U.S. markets stay closed for the entire week. Then maybe we'll get the bank holiday we've all been hoping for!
-Frank
http://www.youtube.com/watch?v=4xgC9HaHyHk
Behold a central planner's worst nightmare, where you strenghten your currency by printing more of it!
LOL could not stop laughing, thanks!
The Japanese and Chinese just solidified painting the Fed into the corner bagholding all those unsellable stocks.
They've got four days to run the market and trap everyone.
Does it rhyme?
Timewave Zero, bitchezz!
I believe it was some 2 weeks ago when most ZHers commented how everything was similar to the Carter era of the 70's. Good to see we're now into late 80's and soon the real show is about to begin... Expect events rhyming with collapse of socialism (China's turn?), Desert Storm I + II (Syria & Iran?), strenghtening of EU and creation of the euro (demise of EU?), dotcom bubble bursting (S&P 800?), large scale false flag attack on US soil...
Godspeed!
"Public Opinion on the dollar, which had dropped back heavily to comparatively low levels, is just starting to improve, as it should,"
clive maund 28/10/12
get short
This is the very moment we have all been waiting for. Following the Keynesian broken-window => increasing GDP theory, we can now only hope for the first US nuclear reactor to implode. Yes, according to anonymous sources, "Ben B." and a Clueless Economist, who wish to remain anonymous, are gathering volunteers to throw sticks and stones at a nuclear reactor close to NY, just to hasten this epic QE, which is measured in Sieverts, not Dollars.
PANIC BITCHEZ.
Truly bullish!!!
I meant bullshit. NY will take a dive as soon as it opens, maybe before.
Good to hear from ZH again, first post since before midnight...was a bit worried.
...Not to mention bored!
Who Hacked South Carolina’s Revenue Department?
http://www.fitsnews.com/2012/10/28/who-hacked-south-carolinas-revenue-department/
Last week S.C. Gov. Nikki Haley belatedly informed the public that 3.6 million Social Security numbers and nearly 400,000 credit card numbers had been stolen from SCDOR by an anonymous hacker. Individual tax returns may have also been stolen.
Exactly. Those Statists that keep humming the IRS mantra, "The only certainty is death and taxes" simply need a grip on reality
in order for Govt to tax they need half-decent staff, managers, computer systems, security systems, record keeping, correlation and invoicing and administrative skills. If there's one thing we know about Govt on all those points, CoCo the Clown could do a better job
Stop Paying Taxes
..death is a certainty, tax is an administrative nightmare for Govt proficiency
So is Greece finally going bankrupt??
And in other news...
http://www.wbj.pl/article-60849-traces-of-explosives-found-on-smolensk-t...
Traces of explosives found on Smolensk Tupolev wreckage
http://rt.com/news/polish-president-crash-suicide-483/
'Key witness' in Polish presidential plane crash dies, suicide suspected
So... who killed the Polish government in 2010??? Russia?? Someone inside the Polish government? The elite?? Traces of explosives confirms it was NOT an accident...
From 2010 :
Polish Plane Crash - Govt Officials MURDERED! STARTLING NEW EVIDENCE!!http://www.youtube.com/watch?v=IKCbhdFjXD0
It was probably done by the same guys that downed the plane carrying Ron Brown, Secretary of Commerce under Clinton. Gotta keep these conspiracy theories alive, you know!
Meanwhile in Australia, the shadow banking sector is trembling as the first domino falls with Banksia.
Banksia in turn immediately pulled Cherry Fund with it, as Cherry's secured creditor TRU called in receivers. TRU in turn is largely owned by a cartel of... wait for it... listed investment companies. LOL. But TRU is quite unique in that it is a significant shareholder of itself, at 6% of outstanding shares. The LICs of course fractally own each other.
Check out my updated slideshow on rampant Australian securities fraud:
http://s1144.photobucket.com/albums/o489/_DrBenway/The%20Great%20Australian%20Investment%20Ponzi/
WHERE IS KEVIN HENRY?
Word is he was taking a three hour boat tour....off Long Island. Should be back soon.
Zleeping on his desk after the obvious ramp last night while New York turns into a sink hole .........................sorry meant shit hole.
It was already a shit hole.
Banker = dingleberry
Sounds like Sandy'd be a good black swan.
markets collapse > social unrest > martial law > elections postponed.
is this the beginning? One can only hope. If this is it, mother nature did hat millions of pussy little affluent bloggers couldn't: end the financial fraud.
Of course, this is all in the elite playbook. They want the collapse just as much as these beer-gut revolutionistas do.
We should thank our RUCKY STARS!!!
No surprise here, banksters around the globe love their printing press.
".. for the second straight day and leaderless as New York is paralyzed.."
Tut, politics
"First, it was China's turn.. conducted a massive 395 billion yuan reverse repo... which in turn sent China's seven-day Repo rate plunging.."
Tut, politics
"...hours later Japan followed with nothing less than QE9! Just around 2 am eastern, the BOJ announced the 9th installment in its neverending monetary farce.."
Tut, politics
Think i see a pattern emerging ..now, how's Europe doing?
"Elsewhere European news were as usual bad.."
i dont think i'll take any bets whether the US equity markets will be down come Wednesday......joke market.....it will print green
Well, at least their not slaughtering gold and silver on the disappointing Japanese QE.
OH, that's right, the criminals aren't working today.
Kevin Henry's alarm is set up fpr 3PM in preparation for the evening ramp.
All this destruction and NY chaos is bullish!!!!
If the latest Japanese QE had a half-life of zero, down from 8 hours, what next? Will the next announced QE fail before it's even announced? Maybe some of those physicists allegedly programming the HFT computers can spare some time to answer this question.
I didnt know Sir Lawrence Wildman was chineese. I thought he was Australian
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