Here Is Why The Futures Are Down

Tyler Durden's picture

No surprises this time in the overnight sessions with treasuries higher into the New York open as Moody’s signaled France’s Aaa rating is at risk and China’s economy grew at the slowest pace in two years, both events reported previously and still occupying the market. Futures are down solidly ahead of Bank of America (which Bloomberg has been caught doing some big shennanigans - see below) and Goldman. More on why numbers on our screen are red, aside from the horrible Crocs guidance of course, is below, courtesy of Bloomberg.

  • Stocks fell and copper led commodities lower. Bloomberg’s Sovereign Debt Movers {WBMV <GO>} is dominated by Northern European names including Denmark, Germany, Finland and the Netherlands. Those nations’ 10-yr yields fell on haven buying
  • 30-yr bonds yield 3.11%, below record-low 3.12% stopout yield at last week’s $13b auction, before Fed purchases $2.25b-$2.75b notes/bonds in 2/15/36 to 8/15/41 range


  • French 10-yr spread over bunds climbed to euro-era record as Moody’s said the nation’s Aaa credit rating is under pressure from deterioration in debt metrics and the potential for additional liabilities from the Europe’s debt crisis
  • China’s economy grew 9.1% in the third quarter from a year earlier, the slowest pace since 2009
  • U.K. inflation accelerated to 5.2%, matching a record high set in September
  • German investor confidence fell to -48.3 in October, the lowest in almost three years
  • Bank of America said to move derivatives from its Merrill Lynch unit to subsidiary flush with insured deposits; move said to divide FDIC, Fed
  • Citigroup closing proprietary-trading unit that incurred losses in 3Q as regulators prepare to restrict banks from making bets with shareholder cash
  • Parliamentary debate in Greece due to start today on new round of austerity measures amid public protests, labor-union unrest
  • Borrowing costs rose at auctions of Greek and Belgian bills;
  • Spanish borrowing costs little changed at bill sales


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Cassandra Syndrome's picture

<------- Bloomberg Headline this evening "Stocks Advance as fears on Eurozone crisis ease"

<------- Bloomberg Headline this evening "Stocks tumble as Eurozone crisis worsens"

NewThor's picture

Economic collapse or whatever.

my future is up, up, up and away!

God bless everyone.

Except those evil banker fuckers.

Strike those demons down.

whirlybird rules's picture

If you think Bloomberg sucks, check out the EU/ECB Press Room, uh, I mean Reuters!  E.g., Monday's European opening headline, "Stocks Rising, Euro Stable on G-20 Assurances" (?!?!?!?)

Check out Dylan Ratigan's interview yesterday on MSNBC w William Black et al.  -  there is hope!

DeadFred's picture

Bloomberg's writers are so lazy they've been recycling those same headlines for months. I propose some news ones that are different and a bit more honest.

"Stocks tumble because we're screwed"

Stocks advanced because we're pretending we're not screwed"

RobotTrader's picture

Yep, and at the first whiff of trouble, people are dumping commodities and piling right back into paper.

augie's picture

I cherrish these insights robo... CHERISH them. 

TheFourthStooge-ing's picture

Yep, and at the first whiff of trouble, people are dumping commodities and piling right back into paper.

I agree with your assessment that such people are frantic, shortsighted fools.


Bastiat009's picture

They may be "frantic, shortsighted fools," but facts are commodities are being sold off as soon as trouble arises. It may not make sense, but it's happening.

tmosley's picture

I disagree with the assessment that these are "people" dumping (paper) commodities and moving into other forms of paper.

NewThor's picture

Don't let the kids get your down, RT.

You're the special sauce antagonist that makes this place fun.


PS. can u keep a secret? I know you're one of the Tylers. 

HelluvaEngineer's picture

The original Tyler doing Robo commentary was better than this one.

jdelano's picture

jesus.  can't believe I didn't figure that out for myself.  

Mentaliusanything's picture

Robo you got a camera in my shitter. I use only AAA rated paper on my Ass

Ricky Bobby's picture

Robo – here is how paper works. Initially there is a premium for the virtual money paper offers because it does not suffer from the physical erosion of real world forces –Theft, debasement, wear, clipping, counterfeiting ….  The essential ingredient for this to work successfully is confidence and integrity. Wisselbank was formed in 1609 as a 100%  deposit based bank under the idea of free coinage [accept any coin]. They would issue bank money for storing the coins and their notes did have a premium . For awhile the Netherlands economy prospered in good part because of the integrety of the structure. But of course Bankers being Bankers they soon started fucking with the system to make their vig and more, and you know how the story unfolds.


Well the concept was simple and brilliant but subject to so much political intrigue. The sociopaths just can’t keep their paws off it. The derivatives of derivatives of derivatives of the parper empire are so tilted, corrupt, convoluted, and ripe for reset I don’t understand how you can adhere to the status quo. Why don’t you get out on a limb and be creative, join with the forces demanding a system of integrety, because in the end the greatest number of humans will benefit from such  a system.

Fips_OnTheSpot's picture

I wonder what "catchy" headline bloomberg will feed the algos.. the one for CITI was already awesome

Ronaldo's picture

They are taking a beating.  Guess this is what the top of the range looks like, bad news to move things back down again.

Bastiat009's picture

Does anybody know why gold is crashing again and if gold will go under $1000/oz when the eurozone collapses?

I have yet to read a story about the gold crash in relation to the euro crash, and how that will impact trades worldwide.

What will happen to GM and Toyota and BMW and Mercedes are 50% cheaper? What will happen to Tiffany's when Cartier is 50% cheaper? ... 

JohnG's picture

Gold is crashing because of the 10K or so /GCZ1 sold on the last 20 minutes or so.  Doubt it goes below 1200 but it of course could.

JohnG's picture

Make that 20K or so....MASSIVE.

Bastiat009's picture

Let me rephrase my question: why would you dump GCZ1 before the market opens, without wanting a good price for it? Is it because people don't care about losing money? 

JohnG's picture

To cover older, more expensive shorts, lower.

msmith's picture

The ES, TNX, and CL have likely put in an important top yesterday.  Intermarket analysis tells us that big moves are likely ahead with risk off being the theme.