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It’s Not Only Greece This Morning.
Some broad macro commentary from Bloomberg's Richard Breslow
This morning doesn’t have the feel of full blown risk aversion, but there is a queasiness out there that is causing markets to feel every spin and lurch uncomfortably. The metaphor would, of course, be more apt if this unease was causing the screens to look green rather than decidedly red, but there you have it.
It’s not only Greece this morning. Things just don’t seem to be functioning smoothly anywhere. More arrests in Hong Kong, delays to the Shenzhen-Hong Kong Exchange link, Kuroda having to say he didn’t mean what he said, weaker start to the new month’s numbers in the U.S., an Indian export number that put paid to any hopes of a reversal of what has been an inexorable six-month collapse, disappointing European car sales (slowest in 6 months) with noted weakness in Latin America being cited, peripheral bond spreads widening out, Spanish 10-yr hitting highest yield in 10 months. Well you get the idea.
But base case remains from a clear plurality of analysts that Greece will be saved (can kicked), China growth expectations are rising, monsoons will pour rain and the FOMC will thread the needle and be both optimistic and placatory. And this is actually a sign of healing. The market is trying to see the bright side of life. Of course if this optimism expectation is based solely on the belief that central banks will “provide” it may require a measure of temperance
The BOJ’s Kuroda held a press conference today and tried to walk back the dog of his JPY comments that sent USD/JPY down 3 big figures. Today’s “retraction” was worth a fleeting 50 pips. People have the short JPY position and it turned into a thank you very much moment. And markets are growing tired of serial official comments being retracted, refined and modified. Perhaps global bankers are simply making too many speeches. Fed and EU speakers, please take note
RBA minutes came and went with little affect. Broke no new ground and won’t do until new 2016 forecasts are prepared. Back to data dependency. AUD fell modestly several hours later in sympathy with the general risk slump, not from the RBA
Volatility in equities is going to continue and coming from still very lofty levels. Keep an eye on the Shenzhen-Hong Kong link issue. It was a big reason for the explosion of market values and we may get a rise, profit-take, rinse repeat
But the profit taking could be short-term roiling. The political news in Hong Kong is also important, especially if the mainland wants to teach HK a lesson in politics. At the end of the day, the PBOC, and most central banks, believe in the equity market wealth effect and will err on preserving it.
Bottom line is the markets feeling a bit nauseous today but are not ready to vomit and people are still looking for opportunities to prudently add
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Ruh-roh?
Yeah, not only Greece but a black bear left a big shit in my back yard
It must be an omen!
At least it's eating good... Unlike some people..
I only have deer shitting in my yard.
On the bright side, chicks really dig bear skin rugs. Go figure.
We just had a scare locally when an Oarfish reportedly washed up on White Crystal Beach. That's pretty far from Japan and the Pacific earthquake zones. DNR personnel determined it was actually a large carp with vulture feathers stuck in its head that somebody had skewered with an oar. It was left where it would be quickly discovered by vacationing conspiracy theorists.
what we need is a good natural dsaster or a false flag op. That'll stick the finger down the throat of the nauseous stock market.
We've got debt saturation food poisoning and TPTB want to keep it down? Well ok but then the bond market will get diorhhea.
Another round of Ponzi Infusion, aka QE##, in the works. They have to keep it up until the whole thing implodes.
It's all Bullshit!!!
Looking moar like BEARSHIT to me bucko..
"And markets are growing tired of serial official comments being retracted, refined and modified. Perhaps global bankers are simply making too many speeches."
Indeed. Peak jawboning.
Its ok Canada is an accident waiting to happen..
http://static5.businessinsider.com/image/557f1a0cecad048933a257cd-956-94...
The banksers have to have infinite debt, Every crevice of society has to be indebted.
humans do this willfully? just a reflection of the status quo. no debt means you and i are freaks, kooks, and arids...
Yeah, for the last week I've had a sinking feeling...I keep hearing Obi-Wans voice in my head "it's as if thousands of voices cried out and were suddenly silenced..."
ponzification:moar debt to entrap moar plebs that have no say in the matter.
To the bankster, printing and pumping up stocks solves everything and enriches them.
Greece isn't just playing chicken with the ECB, they're also playing it with the Greek people. The Greek people don't want to leave the EU but also don't want any more austerity. Which are they going to give in on? Stay tuned.