Shanghai Composite Opens Under 3,000 As Onshore Yuan Practically Unchanged For Fourth Day
Having made its warning to the Fed loud and clear ("if you hike or otherwise push the USD any higher, we will crush your markets by devaluing the Yuan against everyone but mostly the USD"), the PBOC continued the fragile ceasefire between the world's two most powerful central banks, when moments ago it kept the onshore Yuan virtually unchanged, by weakening today's fixing by 0.03% to 6.5637. However, as can be seen on the chart below, this has barely even registered.
The lack of any action in the onshore Yuan has been mirrored in the offshore version of the currency as well, where the CNH has likewise barely budged as shorts have learned their lesson for the time being and few, if any, are willing to risk seeing an 80% overnight margin increase once the Beijing artillery comes storming in and soaking up liquidity.
But while China's currenc(ies) have been a snoozefest so far, more interesting things are taking place in Hong Kong, where the dollar, which plunged yesterday the most since 2003, has rebounded in early trading, but after initially surging to 7.7746, the biggest jump since March 2015 has once again proceeded to weaken now that capital outflows are taking place through Hong Kong.
We are curious to see just how the PBOC will plug this particular capital outflow gap next.
Finally, after yesterday's furious intervention-driven rally in Chinese stocks, moments ago the Shanghai Composite opened for trading below 3000, and as of this moment was lower by about 0.4% to 2,992, suggesting it will be yet another busy day for the PBOC which not having to worry about manipulating its currency can focus on manipulating the stock market instead.
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The 65 point spx rally today smelled of mooshoo pork. If we open below 1900 tomorrow, perfect. http://hedgeaccordingly.com/2016/01/chinas-economic-crisis-is-coming.html
BURRISH!
According to Bultard, if oil stops going down, then you can ignore all of the other horrendous economic and earnings data, and buy!!
and if the markets still go down, then he and his full retard friends will print more trillions to buy up more toxic assets and stocks to force the markets back up.
Eventually, the only thing that will be going up and down by force, will be Bultard's head when he is in the cell with his cellmate Bubba.
Hey Tyler, was it beyond funny when the Dept. of Justus decided to look into foreign investment, after how many years?
What fucktard wrote this article? China would only commit suicide by massive devaluing. Their people wont be able to afford food.
Of course the US would loose all of those manufacturing jobs /sarc
Japan imports more food on a per capita basis than China, why hasn't Japan starved to death from their devaluation yet?
hint: most of their food imports come from even cheaper SE asian nations or other primary exporters whose currencies are falling in tandem with theirs, devaluation against USD does not crimp their buying power in Phillipino pesos or Thai bhat.
Here are some signs of a coming recession.
1. Investors in high-yield bonds are expecting to see their first negative return since the start of the credit crisis in 2008.
http://www.marketwatch.com/story/deteriorating-junk-bonds-flash-warning-signs-for-stocks-2015-12-07?dist=afterbell
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Iron ore prices tumble
http://www.marketwatch.com/story/iron-ore-prices-keep-crashing-adding-to-global-growth-fears-2015-11-30
6. Baltic dry shipping index tumbles
http://www.marketwatch.com/story/shipping-index-falls-to-all-time-low-stoking-fears-about-global-growth-2015-11-19
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Figures you'd show-up during a Chinese dump...
Please spammer.
Fuck off, loser.
think about all the government wanks keeping this shitshow intact.
They can't even track Toy's 'R' Us Drones.
metadata is worthless
"Cuz, I hate you unpatriotic cocksuckers, ya know?" - Vice Public Security Minister Meng Qingfeng
Can anyone please explain to me why the US keeps wanting a strongest possible dollar, when all other countries in the world keeps devaluing their currency continuously?
And yes. I am aware that the central bangsters calls devaluation for “depreciation” these days, cause that’s a more positive word. MS (in my country) explains the devaluation of their currency by claiming that it is helping their exports, but what is america’s take on it? Don’t they want to export more goods? In my country for instance, the currency (versus dollar and all other currencies) is devaluated by a whopping 37% in the last 18 months.
The US doesn't want the strongest possible dollar, but when everyone is either printing money and/or their economy is going to shit, while we are tightening rates, that's what we get. Or in other words, it's the central bankers fucking things up as usual.
Nobody knows what the evil bankers are thinking. A couple years ago I predicted the time where the Fed would have to make a choice, between saving the stock market (what they have done since 1987) and saving the dollar. I think we are close to the latter.
As the petrodollar loses its strangle hold, why would people around the world hold their dollars? The Fed has supplied their answer, because it's the largest traded currency out there and it's gained over all other currencies. If the Fed is the only central bank not easing, people will hold and buy more. That is their plan to save the dollar as the petro backing slips away. Stocks be damned.
Exports don't rely on a weak currency. Look at Germany for the last 50 years. The mark was strong and their exports were strong. The Euro was strong and they were able to export. Sure you can devalue and temporarily help exporters, but it's a road that always ends in disaster. But with the US why make anything, when we can export dollars?
Germany's exports have gone through the roof since they abandoned the DM for the Euro. With the rest of the euro zone helping to drag down the Euro, the German export industry has thrived precisely because the Germans could trade in a currency that was weaker than the old DM could ever be.
I believe you're right. The Fed isn't blnd. They know there's no wage inflation and that the economy is weak, but there are alternative energy and goods trading blocks being developed by Russia and China. The TPP and the recent interest in normalizing rates has a lot to do with salvaging reserve currency status for the US. They will succeed. The dollar will be the last post-71 Bretton Woods fiat currency standing. When it goes we'll be on to something new from our betters.
But the US is exporting like crazy. Ships, fighter planes, tanks, missiles, thousands and thousands of missiles. And the US has a locked-in buyer's club called NATO. The same NATO that is overdoing it with live fire war games on Russia's border.
Even with a cheap dollar the US is not going to make money selling PCs or cell phones.
But as long as the NATO dwarfs have to spend 2% of their GDP on defense and have to upgrade the American systems they already have, why not make 'em pay with a big, strong dollars?
NIK 17180 ready to make a 14 month low any minute or hour:
http://finviz.com/futures_charts.ashx?t=NKD&p=w1
Put up the puking clown cause Shanghai in freefall after runch.
Well that is fine young man, which dollar would you like?
I will take that crisp fresh dollar over there Ma'am.
Well you made a good choice young fellow, that will be a dollar thirty please.
But Ma'am, I only have one dollar!
Yes, but if you want to buy a dollar sir, it will cost you a dollar 30. How many would you like sir?
Well ma'am, how much is that ragged dirty torn dollar then?
A dollar thirty sir...one dollar and thirty cents please
But MA'am, it's only worth one dollar!!
Yes little boy, today it is worth one dollar, tomorrow it will be worthless, but if you want it....that will be a dollar thirty cents please.
But ma'am, I worked for this dollar, it cost a fortune to drive to work, then pay income tax, I already paid a dollar thirty for it.
Yes, and you are a good little man, but that dollar thirty was only worth a dollar, and that dollar was yesterdays dollar, I will have to charge you interest on your dollar from yesterday. You owe me a dollar thirty five now little boyim.