Somewhat disastrous trade balance data from Japan - with exports dramatically worse-than-expected (EU exports -25.1% YoY) and imports worse-than-expected (which will come as no surprise to any ZH reader given Europe's depression and our discussion of world trade here [6]) - has crushed JPY crosses overnight (especially AUDJPY) which is exactly what we said at the close today was required to extend today's equity weakness. Sure enough, S&P 500 futures are down over 6 points from the close now - and trading below day-session lows.
For those too lazy to click on the hyperlink above, here again is the chart we showed earlier in the year [6]when we gloated over the now rotting carcasses of decouplers everywhere (looks like decoupling has been "greenshot" again, hopefully this time for good), which explains why without a healthy Europe there can never be a global recovery:
[7]
Japan Exports missed by the most in a year - pretty much to their lowest since 2009. Stunningly, European exports are -25.1% YoY!
[8]
which sparked AUDJPY (and carry FX in general) to slump...
[9]
which is implictly dragging S&P futures down - below day-session lows (on decent overnight volume)...
[10]
Charts: Bloomberg