Dow Drops To One-Month Lows

Tyler Durden's picture

Stock futures have been fading since China's PMI missed expectations but this weakness, we suspect, is more about the BoJ's somewhat less dovish comments last night - "as long as steady progress is being made toward the 2% target, we do not see a need for additional monetary accommodation." All US indices are tumbling this morning with the Dow now at its lowest level in over a month.

 

 

While there is slowing China growth, a credit event on the horizon, and a clear liquidity crisis; we suspect the BoJ's comments last night are more crucual given the near 1.00 correlation between US equities and JPY crosses...

As we noted yesterday,

"Needless to say, a delay in QE would crush Abenomics, as it would mean a surge in the Yen, a plunge in the Nikkei - really his only accomplishments so far - even as wages never rose, pushing the economy back in the deflationary limbo from whence it came as everyone rushes to sell financial assets. "

Of course, the Nikkei is getting crushed...down over 400 points from yesterday's highs