Overnight Sentiment And Key Events

Unlike the last two weeks, overnight sentiment for once can not be simply described as zombified, as there has been a decidedly negative undertone to risk, first in Asia, then in Europe, and finally in the US, accompanying the stealthy climb in the VIX which from a 13 handle a few days ago has quietly crept to 17. Will the market, finally realizing Bernanke will not say anything groundbreaking tomorrow, sell off just in time for J-Hole, or will the mysterious buying force-cum-Knight Algo reappear at one or more inflection points and push stocks to unchanged or green on the day. Find out in 9 hours. As for the key events of the past several hours, here is Bloomberg's dealbook summary of all the news that's fit to copy and paste.

• Treasuries steady, 5-yr notes underperforming on the curve after yesterday’s auction; week’s $99b in coupon sales conclude today with $29b 7-yrs, yield 1.115% in WI trading; last month drew record-low 0.954%.
• Fed’s Jackson Hole conference begins today, with Bernanke scheduled to speak at 10:00am New York time tomorrow. Analysts and strategists don’t expect Bernanke to signal imminent policy moves
• German economy minister Roesler told Die Zeit that there is no reason for him to take back an earlier comment that a possible exit of Greece from the euro region has lost its terror
• German unemployment increased for a fifth straight month in August as the European debt crisis curbed demand for exports and companies held back investment
• Italy sold EU2.5b of 5-yr notes, top end of target, at an average yield of 4.73% vs. 5.29% at previous auction; Rabobank expected lower yields, remains cautious There’s a risk future ECB sovereign debt purchases may result in “perverse incentives” and perpetuate chronic structural problems, Huw Pill, chief European economist at Goldman Sachs, writes in client note
• Socialist French President Hollande, elected in May, became the country’s most unpopular leader at just over 100 days into the job, a poll showed
• Republican VP nominee Paul Ryan portrayed Barack Obama as a shallow president who has failed to live up to his promises, in a convention speech also infused with an optimism reminiscent of Obama’s 2008 “yes we can” campaign theme
• China’s iron ore output probably fell about 10 percent in August as tumbling prices squeeze out costly producers and steelmakers switch to cheaper imports, the China Metallurgical Mining Enterprise Association said
• EUR/USD gains, rising toward 100-DMA at $1.2589. German bunds gain; Spanish and Italian 10-yr yields rise.
• Peripheral spreads widen. European stocks and U.S. equity-index futures drop. Crude declines. Credit little changed amid a dearth of new issuance, with Markit IG at 101bps, Markit HY at 545bps

Comments

[Temporalist]

Here is a key event.  There is a global recession, the feared "double dip" that was postponed by central banking intervention and central planning megalomaniacs, and they refuse to openly admit it or state it as fact and will not tell people that their interventions have been futile and reckelss.

[Deo vindice]

Speaking for myself, my overnight sentiment was quite relaxed. I had a good sleep and awoke refreshed to meet another day.

To use king Solomon's words on his observation of life:

"The sleep of a labouring man is sweet, whether he eat little or much; but the abundance of the rich will not suffer (allow) him to sleep.

There is a sore evil which I have seen under the sun, namely, riches kept for the owners thereof to their hurt" (Ecclesiastes 5:12,13)

The more things change, the more they stay the same.

[Rollerball]

".. crude declines ..."  

There's your trade.

[Haager]

I'll stay cautious because Its hard to get the hands on physical crude to deal with.

I truly believe that crude will rise steadily, but I also see a tanking global market in the not so distant future. So there is a good chance to be stopped out with losses before the continuous rise sets in.

[Seorse Gorog fr...]

Looks like another Copypasta day today. I'm going back to sleep.

[Haager]

If I look at  commodities and valuta, I do think some still believe in some form of QE.that will have effect on gold, silver and Euro, on the expense of USD, AUD, SEK.

[covert]

lookout for the non-profits, they are dangerious.

http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/