Overnight Summary And Look At The Day's Events

Tyler Durden's picture

It's quiet out there, quieter than usual. Perhaps this is because Merkel is in Canada today and so hasn't had a chance to crash any dreams of magic money trees yet. The EURUSD however did drop preemptively without any news and touched on 3 day lows moments ago under 1.2280, forcing DraghiFX and his long EURUSD call to pay another margin call. Eventwise, in Europe Spain continues to pretend it does not exist, with its bond yields quietly sliding lower even as the country's economy continues to deteriorate, on expectations that Rajoy will ask for a bailout, when in fact the lower yields go, the more unlikely this event is. Of course, all that needs to happen for the deer in headlight market to snap out of its trance is a reminder of just how broke Spain is before it does need a bailout. In the meantime, Spain is extending unemployment benefits. More importantly, it seems that the Chinese slowdown is about to hit Germany like a brick wall: Hamburg - Europe’s second-largest container harbor - reported its first quarterly decline in container volumes in nine quarter. And now the recession is really coming to Germany.

More key overnights summarized by Bloomberg:

  • Spain’s government is considering a request for a sovereign bailout, European Economic and Monetary Affairs Commissioner Olli Rehn signaled in a Bloomberg Television interview yesterday
  • Spanish Prime Minister Mariano Rajoy risks irking the European policy makers he needs on his side after he extended unemployment benefits to avoid stoking social unrest
  • Hamburg, Europe’s second-largest container harbor, reported its first quarterly decline in container volumes in nine quarters as Europe’s debt crisis reached China, the port’s main trading partner
  • U.K. jobless claims unexpectedly fell in July and a wider measure of unemployment dropped to its lowest in a year as the Olympic Games created jobs in London
  • German bunds lower, Spanish and Italian 10-yr notes higher. BofAML IG Master spread narrows to new low for year. EUR/USD erases gains, slides to session-low $1.2283; European stocks, U.S. equity-index futures lower

What to look forward to today:

  • 7:00 am: MBA Mortgage Applications, Aug. 10 (prior -1.8%)
  • 8:30 am: Consumer Price Index M/m, July, est. 0.2% (prior 0.0%)
  • 8:30 am: CPI Ex Food & Energy M/m, July, est. 0.2% (prior 0.2%)
  • 8:30 am: Consumer Price Index Y/y, July, est. 1.6% (prior 1.7%)
  • 8:30 am: CPI Ex Food & Energy Y/y, July, est. 2.2% (prior 2.2%)
  • 8:30 am: Consumer Price Index NSA, July, est. 229.495 (prior 229.478)
  • 8:30 am: CPI Core Index SA, July (prior 229.916)
  • 8:30 am: Empire Manufacturing, Aug., est. 7 (prior 7.39)
  • 9:00 am: Total Net TIC Flows, June (prior $101.7b)
  • 9:00 am: Net Long-term TIC Flows, June, est. $40.0b, (prior $55b)
  • 9:15 am: Industrial Production, July, est. 0.5% (prior 0.4%)
  • 9:15 am: Capacity Utilization, July, est. 79.2% (prior 78.9%)
  • 9:15 am: Manufacturing (SIC) Production, July, est. 0.5%, (prior 0.7%)
  • 10:00 am: NAHB Housing Market Index, Aug., est. 35 (prior 35)
  • Central Banks
  • 8:00 pm: Fed’s Kocherlakota speaks on the Fed in Minot, North Dakota
  • Supply
  • 11:00 am: Fed to sell $7b-$8b notes due 9/15/14-4/30/15

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firstdivision's picture

Good to see all the troubles of Spain and Italy have been cured.  They must have each discovered massive surplus.

In an amazing twist USG10Y yield has risen 25% since June.

malikai's picture

EURUSD cross is getting right into dislocation territory:


Chief KnocAHoma's picture

I have been intensely following Jim Sinclair, Chris Martenson, ZH and many other sites for over five years now. While I see and agree with the common sense logic they promote, it has occured to me this might not be a common sense World.

Everyday the system keeps on running, although not perfectly, but it runs. The lights are still on. My life has been scaled back to a simpler version of what it was from 1998-2006, but we carry on.

So it began to occur to me, "Could that douchebag Bernanke be right?"

Comay Mierda's picture

there are less and less comments/reads on zh articles as each day passes by

that can only mean one thing - complacency before SHTF

malikai's picture

Or it can mean summer break for many..

GetZeeGold's picture



t's quiet out there, quieter than usual.


I've seen this movie......don't go in that dark building. Trust me on this.



Offthebeach's picture

....early morning, in a modest colonial in a tree shaded suburb of Washington, DC, a central banker unzips out of a black vinyl rubber submission suit, looks over the mess of the previous nights perversions and heads to the shower ..

bank guy in Brussels's picture

Bernanke might have shown Draghi how to buy European bonds via the back door through black hedge funds in the Cayman Islands, with freshly-minted off-books electronic euros ... Ben B sez 'This is How We Do It!'

That might keep the can kicked even past September ...

And that reminds me

Montell Jordan, 'This is How We Do IT!' 1995 video


GoldbugVariation's picture

It's a Public Holiday today in several European countries including Spain and Italy.  It's called the Feast of the Assumption which is important to Catholics (for the benefit of any godless ZH readers).

f16hoser's picture

TWAS the Night before Assumption when all thru the Markets,

No one was trading; they were off on their Junkets,

The metals were crushed, done so with care,

As Dimon and Master’s, laughed from their Lair



RECISION's picture

And now the recession is really coming to Germany.

And yet - surprise - that's almost exactly the opposite of what is reported on Deutsche Welle.