This page has been archived and commenting is disabled.
US, European Stocks Collapse As Oil Tests $80 Handle, 10Y Hits 2.15%
Blood in the leveraged momo streets. Nikkei was crushed overenight as USDJPY could not hold 107. European stock indices are tumbling led by weakness in Spain, Portugal, and Italy. The peripheral bond markets are also getting crushed (spreads wider by 15-20bps). This has bled over into US equities with Nasdaq leading the way lower. Treasury yields are collapsing (10Y tests below 2.15%). The USD is modestly lower but oil is continuing to collapse testing the $80 handle for WTI.
What the bond markets have been warning...
Nikkei and USDJPY sliding...
European stocks and bonds ugly...
And US equities testing multi-month lows across the board...
WTI tests into the $80 handle - crushing the Shale dreams for many...
As rates retrace over half the 2012-13 tantrum sell off...
Charts: Bloomberg
»
- 9728 reads
- Printer-friendly version
- Send to friend
- advertisements -
QE4-6 bitchez!
Just print the damn money!!!!
Print the money...and give it to people with 29.5 hr/wk jobs?
Nawww......that would be too obvious.
Fucking QE idiots!
NOT GOING TO HAPPEN YOU MOOKS!
Cause the Feral Reserve is saving its own ass now.
If there is a QE 4, it needs to be a direct transfer to the Treasury and then the Federal Income tax temporarily eliminated. It would probably cost less than $2T/year to cover the income tax revenue.
There were whispers of QE4 into the close yesterday, so yeah, they're going to do it despite their balance sheet... Forward into Oblivion...
balance sheets, ha wtf balances anymore?
Lol, "whispers of QE4 into the close..."
Good luck to you and everyone but the banksters and government rats.
but but but... and what about us???? just print the bloody money
y'all need to stop looking at WTI and Brent and start looking at the OPEC Basket prices... just sayin'
QE XXXVI
Get the Saudis on board, they said. Russia is gonna pay, they said.
"They" ?? It was Obama who said that.
Ah, you're talking about the collective Obama, sir.
Resistance is futile, you will be assimilated into the collective...
If you listen closely you can hear it......... untaper!
So where's the PPT?
<The PPT only works when no one else except momo HFT algos are trading.>
They had a rough day yesterday.....damn shame.......they started the day off so well.
I put in a call to them....so far.....nothing.
I tracked market price action all day yesterday and you could see the tug-of-war between market sentiment and the PPT doing their thing... The money shot came at the end of the session as they pushed the indexes higher into the close, while whacking the VIX... Yesterday was a POMO day and the PPT had bullets... Me tinks today won't be so pretty... Hedge accordingly...
Lower oil prices, evaporating GDP growth AND the loss of the "wealth effect?" Mr. Yellen, fire up those printers, stat!
Oil at 80.00 per barrel and I am still paying over 3.00 per gallon WTF
Rest assured it has nothing to do with inflation, should be sub $2 soon since they have our best interest at heart.
Certain people will slowly start hurting...
Soon we'll probably see "rogue trader" news...
good
bad
What do you think>?
Someone's trying to kill Russians and Shale gas plays at the same time. Big oil companies holding up surprisingly well.
Germany in recession, France in recession and PIIGS in the shitter and Saudi's have to sell oil to somebody to pay their bills!
What do you do when you are desperate to sell?
You reduce the price.
P.S. Big trading houses like Trafigura, Mercuria and also some small ones ahev shut down their Gasoline and Biofuels trading desks.
Interesting how all this cheap oil will be falling into the hands of the Chinese...just as they wanted. And just as they wanted cheap phyzz at rock-bottom prices for 3+ years, they got it and are still getting it.
Now they get to scoop up cheap oil...things sure are working out well for them these days. Now they're also officially the world's largest economy, overtaking the U.S. of 'Merika.
Interesting times...
What do you think they will do with all this cheap oil?
use it...store it...maybe re-sell it for massive profits one day. I'm sure it will come in very handy for them. I hear oil is still kinda important for manufacturing, operating, and heating "stuff".
Chinese stopped stockpiling commodities sometime last year, if my understanding is correct.
This year, you haev layoffs and shutting down of trading desks in commodity trading houses.
They can only use so much and their storages must be full by now.
To me it seems like, the Gold was hyped all the way up and plenty of people bought at $1600-1900 range and then it was dropped all the way down to present $1200.
Just for teh lulz, Im sure!
China needs to offload as many U.S. dollars as possible. They're already buying up all the gold they can with those shitty dollars at rock-bottom prices. Why not oil too?
Once the monetary reset occurs (as soon as next year maybe???) and countries can use gold or their own currencies for oil rather than U.S. dollars (under the new BRICS system), China will already hold massive quantities of both oil and gold. They won't have to use their gold stores to buy as much oil and maybe that means their gold is used to back the yuan/renminbi to take over as the next world reserve currency?
Maybe they'll need all that oil to run their fast growing Navy fleet?
Not sure...but buying up cheap oil will only benefit them in the long run. Maybe they then export excess oil for more gold? I'm pretty sure China isn't all filled up with oil. Nobody ever truly is or can be. Especially the world's most populated country who is also the world's leading manufacturer of nearly everything and the now biggest economy.
I recently heard that China manufactures more steel in 6 weeks than the U.S. does in a year. That they're also the world's #1 car manufacturer.
They're definitely holding all the cards these days and things ain't lookin' so good for anybody else.
Who are they going to sell when everybody is broke and getting by on subsistence living.
Nobody will trade oil for gold, I think if it ever comes to that.
Gold is good to hold when you can feed yourself.
Collapse in energy prices should be great news for midstream energy processors and obviously transports (pipelines, Great Lakes shipping.)
I still think falling back on QE is a really bad idea. It's absolutely true we've had "inflation fail" here but the "panic buying" in the treasury complex is not a sign of distress to me but of "someone else's problem."
Continued normalization of rates strikes me as healthy...so does a stronger dollar. We still have a massive amount of trade in dollar terms and the most open market in the world.
Rock bottom prices for food and energy are not going to harm the US recovery in any way. Bunch of bloviating bailout tycoons sure will though.
QE4Eva&Eva bitches. Hedge accordingly.
Perhaps all the chickens (or Black Swans as the case may be) are finally coming home to roost...
http://olduvai.ca
For Saudi Arabia to have an effective plan they need to press Brent crude to $75
Which kills the US Shale market and puts a dent in Russia's profits, but will not stop the migration to the Eurasian geo-eco-political model... The question is, how long before the House of Saud throws the US under the bus and terminates the petrodollar treaties...
FED has to extinguish $ 60T in reserves.
Less dollars buy more stuff.
No dollars and the stuff is for free!
Its ok.
Moar cheap energy = moar people for the new nonexistent jobs.
CORRECT.
hey, looking for a job just got cheaper.
could alley sweep for scrap metal on the return trip.
never now what ya might find when ya get off the beaten trail.
What would Tepper do???
Isn’t it about time for CNBS to call David Tepper back in so that Jackie DeAngelis can rip him on his “Bonds In A Bubble” and “Stocks Are Fair Valued” calls last month? (You know, like she ripped Bill Fleckenstein on his gold calls).
I just hope for Tepper’s sake all the people who attended his charity gala didn’t only pledge the profits they would make by following his advice.
Now git out thar and vote in Novemburr
This is a prediction of course...
But I wouldn't be at all surprised if the Russian oil and gas giants decided to get together to indulge the Saudi tent dwellers with their own medicine by dropping the price per barrel well below that $80.00 handle.
Just remember this is not a sprint. It's a marathon. And he who holds the largest reserves wins the race!
Saudi's got their back covered by the money printers, Russians not so much.
Saudi's got their back covered by the money printers, Russians not so much.
So let 'em "print" moar!
I think Lavrov says everything that needs to be said and that the Russians are willing to endure the short term pain for the long term gain. The Saudi's aren't in the position to do the same unless it was 10 to 20 years ago...
More importantly they don't have a pipeline directly connected to the EU and China which is why they so desperately need a war!!!
I like Lavrov, and also Vitaly Churkin, very intelligent and articulate guys and have well reasoned arguments.
But I dont see any practical actions. unless they hold some surprises up their sleeves. Lets see.
They will keep trying and Russia will have to retaliate at some point or see its power eroded away.
Simple - tell Europe they can only buy Russian oil with Gold Bullion or Russian roubles.
Tell them this is the case from December 1. What can Europe then do?
Russia is sitting on a pile of reserves, purpose of which is to shelter them from crises like this. Take a look at those charts above that show the oil price crash in 2008. It was a much bigger drop and Moscow's budget deficits and currency protection ate up half of their reserves then, which were about 2/3 trillion USD right before the 2008 crisis. Since then Russia has been building its reserves but not as much - they may have 1/2 trillion cushion today. At this rate, they will burn through the cushion in another 6 to 9 months, IMHO.
But how long can we hold out here in the States? The frackers will walk away from all those wells and leave local governments with the bills and unpaid workers. Who will blink first, USA or Russia?
The Black Swan and the Oil Markets
Nikkei was up 1% on my terminal last night Oct, 15
Wow 10yr is looking to take out the 2.1 mark.... This could get real ugly real quick.
2.07 on the 10 yr. Wow.
i need this shit to collapse faster.
this is nice, but i dont want any of these bastards getting out alive.
i want all these fucking bastards to pay for this fucking mess, we need - 100 on s&p, -800 dow crush this fucking thing
I hear the Kuwaits are giving the Saudis competition in price cuts to the Asian markets. Damn Chinese are getting the gas near free and now oil. They are in it for themselves; Russia be damned.
What about that new grade? ISIS Sweet? How low can it go?
And China doesn't know WTF to do with all that cheap energy since EU and US are not buying stuff.
Well, gas has limited use but is fairing quite well compared to oil, and Russia's biggest deals with China is gas. Oil on other hand has plenty of uses, mostly in creation of energy byproducts or composite material. Since China is a massive producer of plastics and end goods, the oil will just make things cheaper to produce and thus may even lower cost of Chinese goods, which will in turn, give China a stronger hold on the world economy.
Dont see how when contracts are already signed between Russia and China. Just means Russia will have to pump more for same contract price.
Also, oil and gas isnt Russia's only economy. Just the most profiting and exported one. But they can always fall back on agriculture production and heavy industrial equipment production.
Rent money has no bid. Everyone racing to cash again as yields naturally plunge to negative without the FED asset magic print inflator. This will go on like Japan until the Keynes wackjobs figure out that they have nowhere to go except full reset