Is Russia Winning The Oil Export War Against The Saudis?

The European Union might be skeptical about increasing its crude supply from Russia, but China seems to be keen on receiving more Russian Crude. Russian oil exports to this part of the world have doubled year over year last April at the expense of Saudi Arabia and Iran.

US Trade Deficit Jumps In May As Stronger Dollar Puts A Lid On Exports

Confirming once again that a rising dollar is not good for US trade, moments ago the dept of commerce announced that the goods and services deficit was $41.1 billion in May, up $3.8 billion from $37.4 billion in April, and worse than the $40 billion expected. In fact, this was the first miss on expectations (a bigger than expected deficit) since October 2015.

Goldman Warns Of A Sharp Plunge In Stocks In "Next Few Months"

"Tactically, we continue to expect the market will experience a pullback of 5%-10% during the next few months before ending the year at 2100. Strategically, we expect a continuation of the range-bound market that has challenged investors for nearly two years. A maturing economic cycle with elevated valuations, decelerating buybacks, and growing political uncertainty provide the basis for potential market weakness in the second half."

"We've Never Had A Shock To The System Like This" - Global Selloff Accelerates On Brexit, Italy, "Unknown" Fears

The flight to safety following last week's quarter-end window dressing is accelerating, with constant news and flashing red headlines of record low yields across DM government bonds once the norm, and as of moments ago Denmark's 10Y bonds joined the exclusive club of sub-zero yields; gold has soared to fresh multi-year highs above $1,370, the risk-off currency, the Yen, soaring and sending the USDJPY just above 100, while sterling crashed overnight once again below 1.27, levels not seen since 1985.

How Abenomics Fails: Japanese Firms Choose Salvaged Computer Parts Over Investment

One of the most interesting examples of Abenomics dismal impact on business sentiment towards capital spending is that major Japanese manufacturers are buying salvaged computer parts from a small business owner instead of spending the money to upgrade. Those who picture Japanese manufacturing production lines as being on the cutting edge of the newest technology have the wrong impression.

Chinageddon - Gold Spikes As USDJPY, Yuan, Bond Yields Plunge

For the first time since March 2014, Gold is back above $1370, spiking higher as China opens. While silver has been celebrating way above Brexit spike highs, gold's initial reaction was far bigger and that spike high has now been taken out. Across Asia things are moving fast. Bond yields in Taiwan are breaking to record lows, JGBs are at fresh record lows with 20Y yields reaching zero for the first time, and USDJPY plunged to a 100 handle again...

WTI Plunges To $46 Handle After Unexpected Cushing Build

WTI Crude has been leaking lower all night as supply disruptions ease and demand (cough China cough) expectations fall but Genscape's report of an unexpected 230k barrel build at Cushing has sparked another leg lower, back to a $46 handle...

Silver Bounces Back Over $20 After China Day-Traders Trounced

The last 48 hours in precious metals markets - more specifically silver - has been chaotic to say the least with a massive spike Sunday night above $21 and a sudden flash crash overnight to $19.50 before rallying back above $20 this morning. But as Saxo's Ole Hanson warns, the biggest two-day surge in silver since 2011 has raised a few questions about the sustainability of the current rally and what is driving it as silver's recent rise mirrors a similar surge in steel rebar and iron ore futures in April.

Frontrunning: July 5

  • Pound Tumbles to 31-Year Low as Its Post-Brexit Selloff Resumes (BBG)
  • Bad Debt Piled in Italian Banks Looms as Next Crisis (WSJ)
  • Stock Market to Bond Market: ‘La-La-La I Can’t Hear You' (WSJ)
  • A Prime Minister, a Referendum and Italy’s Turn to Get Worried (BBG)
  • Brexit Vote Paralyzes Companies Across Europe  (WSJ)

"China Is Headed For A 1929-Style Depression"

“The government is allowing speculation by providing cheap financing,” Andy Xie exclaimed, China “is riding a tiger and is terrified of a crash. So it keeps pumping cash into the economy. It is difficult to see how China can avoid a crisis.”