Here We Go Again: Chinese Stocks Plunge, Give Up Early Gains Despite Yuan Fix Unchanged

Tyler Durden's picture




 

Update: *SHANGHAI COMPOSITE INDEX FALLS 2.04%(AFTER BEING UP 3.2%)

 

And CSI Futures are tumbling...

 

Not a pretty week...

 

Shifting notavkly from the opening color that we detailed earlier..

With all eyes on Chinese FX and equity markets, following the worst start to a year for US (and Chinese) stocks in history, PBOC decided (after 7 straight days of devaluation and 7% devaluation since August) to halt the run and increase Yuan fix by a paltry 0.01% to 6.5636 (notably below yesterday's 6.5939 CNY close). Offshore Yuan is strengthening and US equity markets are jumping. Chinese equity markets (now theoretically unhampered by their circuit-breaker panic switch) are far less impressed.

 

PBOC fixes the Yuan a tiny bit stronger...

 

Offshore Yuan roller-coastered through the US session as Reuters headlines sparked selling pressure after some Treasury-selling/Yuan-tervention...but is rallying on the not bad news...

 

Onshore-Offshore spread has tumbled to 900pips from over 1500...

 

Asian stocks are set for their worst week since 2011 with some notable names in big trouble:

  • *NOBLE GROUP TUMBLES 10%, EXTENDING LOSS, AFTER S&P DOWNGRADE

While China ETFs trading in US markets signal notable weakness to come for an-"limited" Chinese stock market...

 

Chinese stocks look set for a positive open:

  • *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 2.2% TO 3,194.63
  • *CHINA'S CSI 300 INDEX SET TO OPEN UP 2.4% TO 3,371.87
  • *FTSE CHINA A50 INDEX RISES 2.17%

And Dow Futures love it... for now...

 

Some context:

 

So no news is good news for now...

Charts: Bloomberg

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Thu, 01/07/2016 - 21:59 | 7015118 Saddam Miser
Saddam Miser's picture

-1.  Janet, is that you?

Thu, 01/07/2016 - 23:21 | 7015423 buzzkillb
buzzkillb's picture

How exactly do you lose money in 2015 when the market goes up on bad news and up on good news?

Fri, 01/08/2016 - 00:30 | 7015609 Automatic Choke
Automatic Choke's picture

ooohhhh!   i know that one!    gold, silver, oil, and double-bears!   i had them all!  

(and i keep doubling down, since i never learn).

 

 

Thu, 01/07/2016 - 22:07 | 7015134 thinkmoretalkless
thinkmoretalkless's picture

I have my retirement in a secret location.

Only risk is as I age I may forget where that is.

Thu, 01/07/2016 - 22:09 | 7015155 Pheonyte
Pheonyte's picture

That's why they invented treasure maps. Make sure the X is nice and big.

Thu, 01/07/2016 - 21:02 | 7014863 ISEEIT
ISEEIT's picture

The U.S. markets are propped up by the PPT for one reason and one reason only.  The majority of Americans are ignorant and actually believe that if the markets are up, then everything is going well with the overall economy.  Americans have tied the markets directly into their perception of overall wellness in the country.

Check the difference.

The U.S. markets are propped up by the PPT for one reason and one reason only.  The majority of Americans are ignorant and actually HAVE BEEN TAUGHT  to believe that if the markets are up, then everything is going well with the overall economy.  Americans CONSEQUENTLY have tied the markets directly into their perception of overall wellness in the country.

Thu, 01/07/2016 - 20:33 | 7014694 Jacksons Ghost
Jacksons Ghost's picture

Friday, the FED Is ready to fight.  Overnight intervention already. They want the 400 back tomorrow. Don't fight against an institution that creates money out of thin air.

Thu, 01/07/2016 - 21:19 | 7014944 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

+400

Thu, 01/07/2016 - 20:34 | 7014700 Ms No
Ms No's picture

Wait for it....

Thu, 01/07/2016 - 20:53 | 7014809 Global Hunter
Global Hunter's picture

good call, I went to watch live quotes after reading your post.  Glad I did

Thu, 01/07/2016 - 20:53 | 7014732 Janet Shalom Be...
Janet Shalom Bernanke's picture

Yellen is on the phone with her trading team,  all hands on deck to prop this bitch up tonight, so sheeple may come back in tomorrow to buy stocks.   Wouldn't bet on it.  I think confidence is a bit shattered now.   Rallies near 1968 should be sold.   

This market is as limp as her hubby Henry's pecker wood.

 

Vocabulary lesson for preparation of tomorrow's trading:

Panic (noun)

1) a sudden overwhelming fear, with or without cause, that produces hysterical or irrational behavior, and that often spreads quickly through a group of persons or animals.

2) an instance, outbreak, or period of such fear.

3) Finance. a sudden widespread fear concerning financial affairs leading to credit contraction and widespread sale of securities at depressed prices in an effort to acquire cash, as a result of Central Bank market manipulation of asset prices to unsustainable levels.

4) Slang. someone or something that is considered hilariously funny.

Thu, 01/07/2016 - 20:42 | 7014738 buzzsaw99
buzzsaw99's picture

wow that was easy

Thu, 01/07/2016 - 21:45 | 7015053 SillySalesmanQu...
SillySalesmanQuestion's picture

Soooo easy, a Gartman can do it...

Thu, 01/07/2016 - 20:43 | 7014750 I AM SULLY
I AM SULLY's picture

And the shorts are burned ...

(and soon the cities too)

Thu, 01/07/2016 - 20:43 | 7014751 surf0766
surf0766's picture

You knew it would not continue to crash. The marxist must wait until after their Leader is out of office

Thu, 01/07/2016 - 20:45 | 7014758 I AM SULLY
I AM SULLY's picture

Every time I wonder "should I have bought that silver?", the PPT and FED never disappoints ...

(hyper inflation here we come)

(silver/gold - carbonite for your wages)

(don't be an idiot)

Fri, 01/08/2016 - 06:42 | 7014759 Slowdrip
Slowdrip's picture

Squeeeeezin time....

Thu, 01/07/2016 - 20:46 | 7014761 Mark Mywords
Mark Mywords's picture

Hitlery, I'm gonna beat you to it.

Tomorrow +400.

Thu, 01/07/2016 - 20:49 | 7014783 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

+400

Thu, 01/07/2016 - 20:58 | 7014841 Squid Viscous
Squid Viscous's picture

+800 by next wed. close

Thu, 01/07/2016 - 21:49 | 7015075 Brooks_Orpington
Brooks_Orpington's picture

I often take exception your posts (not that would make you give a shit, nor should it!), but on this one I think you are spot on.  Call it a dead cat bounce or a bear market rally, but I think the bears are about to get there asses handed to them next week.  Beyond that...  I'd still be a bear.

Thu, 01/07/2016 - 22:14 | 7015172 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Please, for you sake and sanity, don't take my predictions or posts too seriously. 

Thu, 01/07/2016 - 20:46 | 7014763 RadioFlyer
RadioFlyer's picture

aaaaaaaand, it's gone.

Thu, 01/07/2016 - 23:06 | 7015368 Cruel Aid
Cruel Aid's picture

lol yea i'll count being on the sidelines as a win. Good luck out there.

Thu, 01/07/2016 - 20:48 | 7014773 Ms No
Ms No's picture

And.... in Fridays news 5 million fine service industry jobs were pulled out of hat. 

Better not, I upgraded from popcorn to pistachios for this.

Thu, 01/07/2016 - 20:49 | 7014786 DirkDiggler11
DirkDiggler11's picture

Good call Ms No, I love pistachios ...

Thu, 01/07/2016 - 20:48 | 7014777 youngman
youngman's picture

Looks like its going to be a big bounce back up day.....got to keep the sheeple happy...all is good in America...

Thu, 01/07/2016 - 20:48 | 7014778 DirkDiggler11
DirkDiggler11's picture

Chicom market already headed south.... Wow, already down 2%, this shit is getting ugly fast

Thu, 01/07/2016 - 20:50 | 7014790 Brooks_Orpington
Brooks_Orpington's picture

I'm showing it up 1.6%. I don't get your numbers.

Thu, 01/07/2016 - 20:51 | 7014798 FreeShitter
FreeShitter's picture

up 1.44 now...those bastards better print more

Thu, 01/07/2016 - 20:53 | 7014804 DirkDiggler11
DirkDiggler11's picture

Investing.com is a great site, but has a lag on Chineese market data, I believe 15 min on average. I was looking at the live real time data on Bloomburg TV.

Thu, 01/07/2016 - 21:00 | 7014851 Brooks_Orpington
Brooks_Orpington's picture

As much as I detest CNN, I've found they have a pretty good read on the global market map.  Here's the link if you're interested:

 

http://money.cnn.com/data/world_markets/asia/

Thu, 01/07/2016 - 21:26 | 7014969 Brooks_Orpington
Brooks_Orpington's picture

It cracks me up when I get downvoted for providing data.  Not opinion (which should be subject to voting), but data.  This site gets weirder all the time!

Thu, 01/07/2016 - 21:28 | 7014995 NoDebt
NoDebt's picture

Bah!  You and your facts.  Have you learned nothing over the last 7 years?  Never let facts or reality get in the way of a good story.

Thu, 01/07/2016 - 21:34 | 7015012 Brooks_Orpington
Brooks_Orpington's picture

Mr. NoDebt,

I've read and enjoyed your comments for a long time.  Love the nail gun!

Thu, 01/07/2016 - 20:50 | 7014784 Arthur Schopenhauer
Arthur Schopenhauer's picture

BOOM! Down goes Frazier!!! Down goes Frazier!!! 

Thu, 01/07/2016 - 20:50 | 7014787 RadioFlyer
RadioFlyer's picture

Shanghai getting moneky hammered in reverse

Thu, 01/07/2016 - 20:55 | 7014820 kev the bev
kev the bev's picture

Up and down like a whores drawers except faster

Thu, 01/07/2016 - 20:50 | 7014792 FreeShitter
FreeShitter's picture

Gotta love the X22 Report as well as ZH!    https://www.youtube.com/watch?v=yftzlqHTG6Y

Thu, 01/07/2016 - 20:51 | 7014796 NDXTrader
NDXTrader's picture

Funny that TPTB are trying desperately to blame the Chinese. Let's not forget that the retail numbers this week from the Christmas season were abysmal - Macy's, BBY and Gap just today. And that the hedge fund hotel of Aaple is down over 20%, dragging all of its suppliers with it. And every oil company in the world is in trouble. Lot's more going on than China

Thu, 01/07/2016 - 20:58 | 7014838 Kaiser Sousa
Kaiser Sousa's picture

u obiviously didnt get the memo...

the U.S. is "exceptional...."

Thu, 01/07/2016 - 20:51 | 7014797 DirkDiggler11
DirkDiggler11's picture

I don't know where Bloomturd TV got this Chineese Tranny Crack Ho, but I've had enough of her ass.

Thu, 01/07/2016 - 20:57 | 7014812 MFL8240
MFL8240's picture

ahahahahahahaha!!!!!!!!!! What a godamn joke!  Let the manipulation begin.  Enough carnage, time for the Dow to make new highs.

Thu, 01/07/2016 - 20:54 | 7014814 Early Retirement
Early Retirement's picture

You should see Crude. No words, man.

Thu, 01/07/2016 - 20:57 | 7014832 DirkDiggler11
DirkDiggler11's picture

When crude hits $20 a barrel, I'll start stacking the barrels in my backyard.

Thu, 01/07/2016 - 21:52 | 7015091 Reggie Dunlop
Reggie Dunlop's picture

I'm loading up the whole way down. PM long, oil related intermediate.

Thu, 01/07/2016 - 20:55 | 7014818 RadioFlyer
RadioFlyer's picture

Mr. Yellen must have pulled out the Credit Card (Bank of Great-Great-Great-Great Grandchildren's Debt Load) cause its going back up!

Thu, 01/07/2016 - 20:58 | 7014843 kev the bev
kev the bev's picture

One word, Desperation

Thu, 01/07/2016 - 20:59 | 7014844 DirkDiggler11
DirkDiggler11's picture

Yep, looks like a bit of turbulence tonight, started earlier than I thought. I figured at least the first hour of trading would be a smooth ride to the upside...

Thu, 01/07/2016 - 20:57 | 7014833 conraddobler
conraddobler's picture

Looks like a plane with one bad engine stalling all the way to the dirt.

Too bad they didn't watch Bugs Bunny growing up they'd know they can just step out of the plane right before it crashes.

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