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Overnight Sentiment: Straws Cracking
Confirming that the market is now completely insane is a rehash of the actual catalyst data flow: recall that yesterday the one thing that pushed stocks higher, as described in Clutching at Straws, was the surge in German factory orders. Today, we get another huge beat of expectations in German Industrial Production and everything is red. Although now that US traders, most of them originating at Liberty 33, are starting to walk in, we may get yet another of the much anticipated and largely loved turns from a blood red premarket to green everywhere.
Goldman summarizes the German Industrial production number:
German industrial production rose 2.8%mom after an upwardly revised -0.3% (revised up from -1.3% initially); BBG consensus was +0.8%.
Activity in the construction sector jumped 30.7%mom after the cold-weather induced -16.9% drop in February.
Manufacturing output also increased strongly, rising +1.5%mom after +0.2%.
This is a strong report and, together with yesterday's manufacturing order data, suggests a solid underlying growth of the German industrial sector.
And from BofA, a full market recap:
Market action
Asian equity markets finished mixed today. The Japanese Nikkei ended 0.7% higher, while the Korean Kospi moved up 0.5%. On the flip side, the Hang Seng finished down 0.3%, as property developers declined amid plunging real estate sales. The Shanghai Composite shed 0.1% and the Indian Sensex lost 2.1%.
Political uncertainty continues to weigh on European equity markets, in the aggregate, equities are down 0.9%. In Greece, the leader of the New Democracy party, Mr. Antonis Samaras, failed to form a government. Since he has failed to form a coalition, the President has now asked Mr. Tsipras, the leader of Siriza, to form a government. If Mr. Tsipras also fails to form a government, then Mr. Venizelos, the leader of PASOK will attempt to form a government. If all three leaders fail, the President will call all three of them together to urge an agreement for a coalition government. If all these efforts fail, another election would have to take place in about a month, which could be followed by another election and so on, until a government is formed. Overall political uncertainty is high and Greece's bailout program and its future in the Euro area are at risk. To read more, see today's European Economic Daily.
At home, futures are set to follow the European equities lower. S&P 500 futures are pointing to a 0.6% lower open today. In bondland, Treasuries are bid across the curve, with the 10-year yield currently trading at 1.84%. In Europe, UK gilts and German bunds are bid at 1.96% and 1.57%, respectively.
The dollar is strong against other major currencies and is up by 0.3%. This continues having a negative impact on commodity prices. Crude is down 1.1%, falling to $96.83, while gold is weaker by 0.5%, down to $1,630.
Overseas data wrap-up
Weaker demand from the Euro area countries slipping into recession is beginning to way on their neighbors. Industrial production in Norway slipped 0.7% mom in March, following a revised higher 0.3% drop (originally reported as a 0.6% contraction).
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"I won't let the EU affect the US" Ben.
--unless it's positive news---
33 Liberty St, 33 Maiden Ln. Someone sure likes the number 33 for their manipulation facilities.
directive: the EU is going to the US
ES futures already shaved 40% or so of its loses in less than an hour. Same f'ing bullshit and just another day for the middle class to take it up the ass.
Edit: make that 80% in the additional 10 minutes since I posted...un-fucking-real. I am so sick of this shit.
Amen.
TPPT is on the job. The only question is when will one of these gamblers go all in and lose?
The plug needs to be pulled ... literally
"the market is now completely insane" - Yep
Everything is fine, but don't look behind the curtain for the love of god. /sarc
Ah, Tyler, you have such a lovely way with words...
Given the deficits figures yesterday and Facebook IPO in the next week or so, I full expect the markets to hold up - after all, we want all those retail investors to get into Facebook now, don't we?
DavidC
Oh no, the sky really is falling. Buy dollars and US treasuries now. /sarc.
Really? Looks like they just gassed the hell out of the ES again. At least, that's sure how it looks from my monitor.
They haven't even begun the main event yet. This all under-card non-sense.
Free markets don't get 'gassed'... you silly.
The futures straw market changing from red light to green light without any traffic. Works just like that mysterious damn red light
between my favorite bar and my house that only turns red on my approach.
As we all know, none of the numbers can be believed. Every beat has the comment, sales were down in the US and Europe but easily offset by Emerging Markets.
Emerging Markets is the new slush bucket on the balance sheets of corporations. You can hear them in meetings, "just make the emerging markets number bigger, and if anyone asks just say it is complicated and involves currency conversions."
this is the problem with andhft created market. ramped upway too high forthe fundementals, even if things beat expectationsway over valued.we can thank the bernak who thinks asset prices are the realeconomy and the deeply flawedlogicof the central bankers.asset prices can only have value if the money flowsfromrealto financial,not the other way around.
Another day of ES manipulation ahead.
Must.keep.Dow.above.13,000.
Remember: Markets can remain insane longer than you can remain solvent!
Just buy Silver and Gold and sleep well at night. The world's insanity will end someday..... Too Be Cont.
Primary wave 3 down for the Dow - in elliott wave terms.
http://bullandbearmash.com/index/djia/weekly/
I think you are rather acurate, this past twomornings I've woken up with things so far in the red, getmy coffee, and things are down only a little it'sf'd up and you really see the plunge protection team in action. of course tehre will be no investigation, but someone (as usual ) is really manipulationg the premarket trading.