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Quiet Overnight Action On America's Day Off

Tyler Durden's picture




 

With US markets taking a day off today for Memorial Day, liquidity will be even more sporadic than usual, and any sharp moves will be that much more accentuated, although such a likelihood is minimal with all US traders still in the Hamptons. In an otherwise very quiet overnight session, perhaps the most notable move was that of the USDJPY, which continues to be "strangely attracted" to the 101 line although selling pressure is certainly to the downside, with a downside breakout quite possible, however that would lead to an early and very unpleasant end to Abe's latest 'experiment' (to quote Weidmann). The Nikkei225 already closed down 470 points, or 3.22%, as Mrs. Watanabe's faith in the market, seems to be fading with every passing day.

What the numbers say:

  • S&P 500 futures -0.3% to 1646.00
  • Stoxx 600 up 0.1% to 303.7
  • US 10Yr yield up 0.2bps to 2.01%
  • German 10Yr yield up 1.5bps to 1.44%
  • MSCI Asia Pacific down 1.2% to 137
  • Gold spot up 0.6% to $1394.3/oz

EUROPE

  • 18/19 sectors rising led by technology, autos & parts, media
  • Selected movers on earnings/statements: Fiat +4.1%, Saras +3.2%, Club Med +2.6%
  • Other gainers: Exor +4.1%, Commerzbank +3.2%, Aixtron +3%, Lagardere +2.6%, Suez Envir. +2.6%, Ryanair Holdings 2.4%, Freenet +2.4%, Fugro +2.4%, SAP +2.2%
  • Other decliners: ADP -2.8%, Holcim -1.1%, GEA Group -1.1%, SGS -1%, Pohjola Bank -0.9%, NCC -0.8%, Kerry Group -0.8%, Kuehne & Nagel -0.7%, EMS Chemie -0.7%, Celesio -0.7%

ASIA

  • Asian stocks trade mixed with Nikkei, Topix declining, Shanghai, Hang Seng, Kospi rising.
  • MSCI Asia Pacific down 1.1% to 137
  • Nikkei 225 down 3.4%, Hang Seng up 0.3%, Kospi up 0.3%, Shanghai Composite up 0.2%, ASX down 0.5%, Sensex up 1.5%
  • 9/10 sectors fall led by consumrer discretionary, utilities * Chinese YTD industrial profits for April grew 11.4% vs prior 12.1%
  • Gainers: Nomura Real Estate +7.7%, Asics +6.8%, Guangzhou Auto +6.4%, Beijing Enterprises +6.4%, Reliance Communications +5.4%, Reliance Industries +5%, Airtac Intl. +5%, Orior +4.6%, SBI Holdings +4.6%, Dena Co. 4.6%
  • Decliners: Mitsubishi Motor -9.3%, NSK -8%, Yamaha Motor -7.9%, Mitsubishsi Electric -7.7%, Taiyo Nippon -7.6%, Nabtesco -7.6%, Fuji Heavy -7.6%, Yaskawa Elec. -7.5%, Tepco -7.3%, Hitachi Construction Machinery -7.2%

 

SocGen recaps what little macro catalysts there are today:

The bounce in EUR crosses on a stronger than forecast German IFO survey on Friday proved short-lived and in doing so sent an important message: good macro-economic reports and positive data surprises from the eurozone are being met with a considerable degree of indifference among market participants, whilst disappointing data tends to magnify the downside growth risk and bolster EUR aversion. This proverbial shrug of the shoulders to eurozone data was repeated after the weekly ECB LTRO repayment data. A marked increase in total repayment (LTRO1+2) from EUR1.124bn to EUR8.123bn, the highest since April 19, made no difference even though at the margin the increase and resulting decline in the balance sheet is a positive EUR element. However, turning the argument on its head, an anaemic recovery where liquidity is diminishing (excess liquidity below EUR300bln) will keep the ECB mulling over its options to boost the flow of credit.

This week is unlikely to improve EUR sentiment dramatically considering the mostly second-tier nature of data releases and the greater focus instead of month-end flows in bonds and currencies. The direction of UST yields and the volatility in JGBs cast a large shadow over asset markets last week and wild gyrations in the Nikkei will plead for caution until the dust settles. Rate differentials have been the determining factor for currencies and this will remain the case until we hear from the ECB at the June 6 meeting. Economists will feast on a deluge of EU data including the flash estimate of EU CPI, unemployment and monthly EC confidence data, but to the market this data may not prove extremely relevant.

US and UK markets are closed for public holiday today and the resulting dent in market liquidity will keep many participants sidelined. Norwegian unemployment and Swedish retail sales data are due this morning. The NOK is the second best performer in G10 this month but the SEK took a fresh blow on Friday following disappointing confidence and economic tendency surveys. For EUR/NOK, failure to extend above 7.55 last week looks set to be followed by a return below 7.50 this week. EUR/SEK was denied of a weekly close above 8.60 after a third attempt in five weeks, but downside pressure does not look compelling either with support holding firm at 8.53 since mid-April.

 

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Mon, 05/27/2013 - 07:33 | 3600727 howenlink
howenlink's picture

Gonna mound my potatoes this year.  Just in case.

Mon, 05/27/2013 - 10:51 | 3601035 Zero Govt
Zero Govt's picture

it's a Rooster, i'm gunning for Roosters, Reggie to be specific, though hope Farmer Tyler takes him to the wood shed to blow his brains out before I get too many more rounds into him

you're not Reggie Rooster are you? ....say it ain't so and I let you live/cluck/strut (delete as appropriate) .....and mound your potatoes

Mon, 05/27/2013 - 07:39 | 3600729 observer007
observer007's picture

New Report from Dr David Evans

"Gold is Different. What Next?"

 

Unprecedented Physical Demand "If Western governments confiscate and outlaw gold, all pretense of a market or free society is gone" http://homment.com/gold-different
Mon, 05/27/2013 - 08:22 | 3600773 Bobbyrib
Bobbyrib's picture

 When Western governments confiscate and outlaw gold, all pretense of a market or free society will be long gone.. is what he should have said.

Mon, 05/27/2013 - 07:57 | 3600746 dick cheneys ghost
dick cheneys ghost's picture

solar panel roads??...........

''The idea is as simple as it is ingenious. Wherever roads are laid, solar panels could go instead. They would generate electricity, which would in turn be fed into the grid. Thus, oil is conserved twice: Electric cars could be charged with the energy produced by the panels, and the panels would replace the use of asphalt, the production of which requires petroleum.''

http://www.spiegel.de/international/world/solar-road-panels-offer-asphal...

Mon, 05/27/2013 - 08:07 | 3600755 GetZeeGold
GetZeeGold's picture

 

 

Great idea.....except for the math.

 

I'm just talking the construction.....let alone the upkeep.

Mon, 05/27/2013 - 09:54 | 3600936 dick cheneys ghost
dick cheneys ghost's picture

In a post-dollar world, when gas is $12.00 per gallon or more, this idea will gain wide-spread acceptence.....

I hope this post-dollar world happens sooner, rather than later.......America can innovate around OIL, but only when the EMPIRE is dead........

Mon, 05/27/2013 - 08:18 | 3600767 Dead Canary
Dead Canary's picture

Three times as much as asphalt. Give me a break!

Mon, 05/27/2013 - 09:18 | 3600874 dick cheneys ghost
dick cheneys ghost's picture

considering the cost of EMPIRE (wars).......its not that expensive........Im for it only because the EMPIRE would be against it........

http://www.solarroadways.com/main.html

 

Mon, 05/27/2013 - 08:25 | 3600776 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Solar produces more energy than it consumes.  /sarc.off

Mon, 05/27/2013 - 08:11 | 3600759 unwashedmass
unwashedmass's picture

 

absolutely ripe for one of those "mysterious"" gold/silver smash downs that the CTFC can never actually seem to "see"....

 

sitting with ammo ready....let's get it on! Come on, Jamie, Blythe and Ben, I been holding cash waiting for this glorious moment when you go all in .........

and, while the CTFC can't see, all the rest of the world sees lit up in glorious fireworks display how incredibly manipulated our markets are.......

and how you guys demo that you absolutely rule the world!!! And that's the way it is and will be as you take us sailing off the cliff into the abyss.....

come on gang, gold smash! silver smash! we know you got one plannned for this weekend......its been whispered about for a week!!!!

Mon, 05/27/2013 - 08:24 | 3600775 Bobbyrib
Bobbyrib's picture

Gold is up, funny how the US markets are closed and gold has not gone down today.

Mon, 05/27/2013 - 08:32 | 3600798 unwashedmass
unwashedmass's picture

ah, just wait.......they will take this down spectacularly tonight. tomorrow is options expiry, and they don't have it to meet delivery. 

what else can they do? and why not? they completely own the regulators........bart and gary..their computers are programmed to completely black out all Cartel activities.  So they have complete implausible deniability.  And the press, despite all evidence to the contrary, will back them up......

have been saving my cash all month for this big smash up. can't wait. and when i caught the whisper of this "action" on the web, and saw the typical trading signals that the "in crowd" uses to telegraph this week....i nearly went into a coma of total bliss.......

the last grand super bloody smash.........

let's get ready to RUMMMMMBBBBBLLLLLEEEEEEEEE

Mon, 05/27/2013 - 08:33 | 3600801 polo007
polo007's picture

http://www.bloomberg.com/news/2013-05-27/china-said-to-study-investing-reserves-in-u-s-property-market.html

China is studying the possibility of investing a portion of its $3.4 trillion in foreign-exchange reserves in U.S. real estate, said two people with direct knowledge of the situation.

The State Administration of Foreign Exchange began the study after seeing signs of a recovery in the U.S. property market, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. China may acquire properties, invest in real estate funds or buy stakes in property companies, they said. The safety of the investments will be the top priority, said the people, who didn’t elaborate on a timetable or other details.

China has set up an operation in New York to make alternative investments in the U.S., an effort by the country’s foreign-exchange reserves manager to diversify away from U.S. government debt, the Wall Street Journal reported last week, citing people it didn’t identify.

Prices for single-family homes increased in 89 percent of U.S. cities in the first quarter as the housing market extended its recovery following a five-year slump. The median sales price rose in 133 of 150 metropolitan areas measured from 74 year earlier, the National Association of Realtors said in a report on May 9.

“In the long run it should be a good opportunity as the U.S. property market is gradually rebounding,” said Frank Chen, Shanghai-based head of China research at CBRE Group Inc. “It will help diversify the foreign reserves’ investment portfolio. Properties such as office building have stable yields, which match its investment strategies.”

Mon, 05/27/2013 - 08:50 | 3600829 unwashedmass
unwashedmass's picture

laughing. well, the Chinese believe our propaganda. there's a wonderful, and ANOTHER, backfire. the idiots in charge pump out crap about the "rebound", and end up selling the country to the Chinese. 

way to go Ben. way to go. 

Mon, 05/27/2013 - 08:51 | 3600831 Bobbyrib
Bobbyrib's picture

Maybe they discovered owning our debt was not the right way to own us.

Mon, 05/27/2013 - 09:24 | 3600879 RazvanM
RazvanM's picture

Well, the Chins will find out that "owning" real estate in US is kind of costly. Maybe they will do an "Israel" buy all the West Coast and declare independence :)

Mon, 05/27/2013 - 09:16 | 3600872 Seasmoke
Seasmoke's picture

What does Ben give a fuck. He will just move to Israel.

Mon, 05/27/2013 - 09:33 | 3600892 unwashedmass
unwashedmass's picture

 

when this all come crashing down, Ben's going to have to move off the planet. 

it is stunning that everyone is allowing one guy to dictate action......and the one guy is so, so, so wrong ..... and now most of us watching know it. 

Mon, 05/27/2013 - 13:13 | 3601327 Kirk2NCC1701
Kirk2NCC1701's picture

But isn't at least ONE government conspiracy gonna come true?  Like an attack on gold/silver?  ;-)

The beauty of having some, is that you can turn off the MSM and enjoy the w/e, and... mourn the loss of those poor souls who perished in whatever "Bankers' war".

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