Markets In Turmoil As Brexit Fears Mount And Japan, China Data Tumbles

Tyler Durden's picture

FX, equity, and bond markets are in turmoil as Asian markets begin trading with Japan ugly, Sterling getting spanked, China devaluing FX (stocks down hard), and crude ($48 handle) and US equity futures (Dow -70) extending losses (as bond markets are all tumbling to record low yields). The hangover from further brexit concerns is not helped by the weakness in Japanese and Chinese data tonight.

First Japanese manufacturing data was a disaster...

 

Then Chinese data largely disappointed. A "meet" in Industrial Production - hovering at multi-year lows...

*CHINA MAY INDUSTRIAL OUTPUT RISES 6.0% FROM YEAR EARLIER

 

Retail Sales missed...*CHINA MAY RETAIL SALES RISE 10.0% FROM YEAR EARLIER (lowest since 2006)

 

And FAI missed... *CHINA JAN.-MAY FIXED-ASSET INVESTMENT EXC. RURAL RISES 9.6% (lowest since 2000)

 

And if the anxiety over global growth and Brexit were not enough, this China data has sparked even more turmoil in markets as Asia gets going...

First, Japan...

  • *JAPAN'S TOPIX INDEX EXTENDS DROP TO 3%; NIKKEI 225 FALLS 3%

Japanese stocks shorts biggest since 2008...

And Japanese 10Y Yields record lows (along with 20Y and 5Y)...

But it's not just Japan, Germany, and Switzerland...

  • TAIWAN 10-YR GOVT BOND HITS RECORD LOW OF 0.76%

 

In China, as we could have guessed by Bitcoin's surge, the Yuan is tumbling...

PBOC devalues the Yuan fix by over 2 handles - back near 5 year lows...

 

As the Yuan basket plunged to lowest since Nov 2014

 

Chinese stocks are down most in 6 weeks:

  • *HANG SENG INDEX FALLS 2%
  • *CHINA'S SHANGHAI COMPOSITE INDEX FALLS 1.3% TO 2,889.91 AT OPEN

 

And anything Brexit-related...

Cable at 2mo lows...

 

Sterling shorts biggest in 3 years...

 

and GBPJPY is a bloodbath... Pound plunging to lowest since Aug 2013...

 

And finally, gold is holidng its recent gains...

 

Despite the monkeyhammering it got earlier...

 

Which must be very upsetting for The BIS. Given this much turmoiling, one can only imagine the central bank efforts to make sure Monday opens green on the NYSE.

 

Charts: Bloomberg

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Buster Cherry's picture

Do it Britain.....DO IT!!!!

38BWD22's picture

 

 

 

The data is not THAT bad, and China (Shanghai stocks) is not down as much as the Nikkei.  Maybe the Bitcoin run-up was not a danger signal like I had wondered.

 

 

EDIT: Peru just beat Brazil 1 - 0 on a disputed goal.  Brazil just eliminated from the Copa America.

Manthong's picture

Yawn.. wake me when Yuan hits 7.75, GPB and JPY hits parity with USD, GC hits 1656, and SI hits 25.

philipat's picture

Either they are really scared about Silver or they are trying to use Silver and Platinum as softer, cheaper ways to attack Gold. I suspect a bit of both. My gut tells me that Silver is going to take off very soon?

SomethingSomethingDarkSide's picture

38 yr old Bull Walrus Dyke seeking 22 yr old?

Dead Canary's picture

GODDAMMIT!!!! I'm out of popcorn.

"Reddinbacher, Reddinbacker! My kingdom for Reddinbacher!"  ~ Richard the Turd.

philipat's picture

I didn't know Richard was Irish?

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 12, 2016 9:14 PM

After such a horrific tragedy like we saw in Orlando this weekend, the Brexit vote needs to be called off so that the world can show solidarity for the LGBT community.  Its inappropriate for the British to be voting on a matter such as this at a time like this especially since the vote is leaning toward an exit which can easily be translated into Britain turning its back on the gay community.  Let's revisit this vote in a few years when the world is a more peaceful place.  #GayLivesMatter #MDB

Newbie lurker's picture

MDB, take note. That is how you do it.

Old Doctor's picture

Why would you try to diminish what happened in Orlando by dragging it into the Brexit issue? Your comment is a disservice to both 

Urban_diplomat's picture

He was simply illustrating how the powers that be will play the situation. They'll use empathy for what happened to garner support for killing the brexit vote.

High-brow sarcasm.

cats rule's picture

Let's revisit this vote in a few years when the world is a more peaceful place.  #GayLivesMatter #MDB

 

this world aint about to get more peacefull in the next few years my friend....


kingkong100's picture

That old slut Yellen will use this as an excuse to delay rates again.

BullyBearish's picture

If you really think so, do yourself a favor and load up on PMs and miners...NOW

Raffie's picture

We all seen this before and as the markets go on today/tomorrow they will pull a total Houdini to make them green.

So we will have to see if they can locate and convince Houdini for a green favor.

 

I hope the Brexit happens, the whole EU/Euro is total crap and we all know it.

HenryHall's picture

Just because they vote Brexit does not mean that Britain will leave the EU.

Any more than it meant anything when the Greeks voted Oxi.

Raffie's picture

True, because everyone votes does not mean it will happen.

Also on a side note Germany is not looking to healthy and a Grexit will hurt Germany big time.

All the dominoes are setup and once the 1st one goes the chain reaction will be epic.

We are seeing history in the making for sure.

Herdee's picture

If the Brits vote to exit the E.U.,I think Soros will be right,that'll be the end and others will leave too.Gold will be the winner.

HenryHall's picture

If the Brits actually leave then the French will too.

And the UK and France will get together in a Common Market.

Common Market - good

Ever Closer Union - bad

khnum's picture

I wouldn't worry as Stalin said it doesn't mater who votes what matters is who counts them,also referendums are not binding in the UK its parliament can ignore the will of the people

Lore's picture

Long torches and pitchforks

Raffie's picture

GOLD = GOOD

USD - BAD

mgbkurtz's picture

It's ok Longs, the Fed will save the day for you tomorrow.  Bullish. 

RagnarDanneskjold's picture

Private fixed asset investment is down to 1% growth. At the current rate of decline, private fixed asset investment will be in recession this month.

Investment in the private service sector, which is supposedly the future of the rebalanced economy, already fell 0.1 percent in May.

Machuria is getting uglier as well, private investment was down almost 36% in May. 

What Rebalacing: Private Service Industry Investment Declines 0.1 pc
thesonandheir's picture

PPT getting ready for action tomorrow,  pump oil and dollar yen and smash gold and vix.

 

Must come so natural to them after doing it for so long.

Kefeer's picture

Bullish; bad is the new good and the FED is off the hook...however if history repeats itself over the past Presdential cycles (end of 8 year cycle), then the FDED shuld raise rates to create prick the bubble.  The poblem this time is the bubble is plural and massive.

Global Douche's picture

Especially due to the massive exposure from derivatives. If I remember, just over 2/3rd's of these contracts are specific to interest rates. A huge quaking took place in December with just the 25 basis points. I want those fuckers to bring it on!!

Nobodys Home's picture

If oil goes to $18 I'm buying! So says my buddy. I might go on that as well!

Nobodys Home's picture

Yellen. Obama, Cliton, the dramatic realization of the overestimation of the GDP and the tax base leads me to believe a massive correlation of the earnings vs expenditures shows that the PPI has shortrun the PMI and there is a definite possibiity of profits to be made in the commodities sector.

I really know what I'm talking about! You should mark my words! I've just quit my job as an RN and have decided to become an economist!

Global Douche's picture

I'll upvote you, but I want to see what you think regarding the Mount Everest of paper garbage derivatives, that massive elephant in the room who is lifting its tail and about to shit on Yellen's desk.

Nobodys Home's picture

Silver, Platinum and Palladium seem to be down a little as gold is up.

snoozinjoe's picture

Brexit won't happen.  Parliament has said they'd block t regardless of the vote.  

GoldenDonuts's picture

Yes and the pitchforks and guilllotines will be right outside for use upon exiting parlaiment.

Nobodys Home's picture

I've been watching gold/platinum for a couple years now...It used to be that platinum led gold by about $140 an ounce....pretty evenly every month.

Now platinum is about $260 to $290 less than gold....That's a $400 difference. Yah.....autos etc......but maybe something to think about?

Billybullshit's picture

For my American friends on here, when we vote out, they will with out doubt try for a re vote after renegotiation in a years time, but it wont work. What they failed to appreciate is people don't like the idea of open borders. As for the vote itself, its a paper ballot box vote, and each local polling station will announce its own result, so they wont be able to fix it at a national level, see guide below

 counts will get under way when polls close at 22:00 GMT Thursday, 23 June at 382 local centres around the UK. These local results will be declared as the counts are completed before being collated at 12 regional centres, which will also declare the totals for each side. There will be a rolling total so the time at which one side reaches the point of being mathematically unbeatable depends on how quickly the vote are counted and how close the results are running. It is a safe bet that from 4am onwards there should be pretty clear picture of which way the vote is going. A chief counting officer will announce the overall result at Manchester Town Hall.

Rip van Wrinkle's picture

Two words as a counter argument to 'the vote won't be rigged': -

 

POSTAL 'VOTES'

Global Douche's picture

For that matter, I'm surprised Scotland doesn't do the same thing, not that they didn't get their chance, but I see the same parallel nevertheless.

galant's picture

The word SHOCKING! in the head-line only exposes the editor.

lalita93's picture

I really like Japan, I think it's a good place to live. I'm currently learning japanese with Skype with http://preply.com/en/japanese-by-skype so I can visit this awesome place one they and get to know their culture.