China

China

US Futures; Euro Stocks Slide On Deutsche Bank Liquidity Fears; Bonds Bid

Following yesterday's paradoxical US stock surge catalyzed by a bevy of bad macroeonomic news, the overnight session has seen some good old "risk off" mood which hit European shares as a result of the previously reported $14 billion DOJ claim against Deutsche Bank, which sent Europe's biggest bank tumbling, dragging the banking sector lower, while a continued drop in the price of oil pushed energy companies lower.

Frontrunning: September 15

  • Global stocks struggle for footing after bond slip (Reuters)
  • Mobileye says Tesla was 'pushing the envelope in terms of safety' (Reuters)
  • Donald Trump is a problem for the whole world, EU's Schulz says (Reuters)
  • Stuck on Ship, One Gloomy Hanjin Crew Waits to Learn Its Fate (WSJ)
  • U.K. Approves EDF’s £18 Billion Hinkley Point Nuclear Project (BBG)

US Futures, European Stocks Rebound, Bonds Fall Ahead Of US Data Deluge

The overnight session started with more weakness out of Asia, where chatter that the BOJ may end up doing nothing despite all the trial balloons (as we hinted yesterday), sent the USDJPY sliding, pushing the Nikkei lower, leading to a 7th consecutive decline in the Topix, the longest such stretch since 2014 even though the BOJ is now actively buying a record amount of ETFs. However, the modest dip in S&P futures and European stocks proved too much for BTFD algos, and risk promptly rebounded.

China Floods Economy With Over Rmb 1 Trillion In New August Credit

When one month ago China announced that it had created just Rmb 488 billion in new credit as per its broadest credit aggregation metric, Total Social Financing, there was broad concern that the PBOC had again hit the brakes on the country's rampant credit expansion. Those concerns were more than allayed, however, overnight, when the PBOC released its latest August new credit data, which saw total credit grow by well over Rmb 1 trillion.

"It's An Inside Job" Oliver Stone Says DNC Hack Is A "Disguise From What's Really Going On"

Never one to shy away from controversy, infamous director Oliver Stone (see here, here, and here) is once again challenging the mainstream media's narrative; this time with regard the "russian hacking and leak of the DNC." Speaking with CNN's Christine Amanpour, the Hollywood director said he believes the Democratic National Committee email hacking scandal was an "inside job...to disguise what’s really going on..."

Duterte Turns Back On US, Orders Philippines To Buy Weapons From Russia And China

In an abrupt departure from his nation’s longstanding military reliance on the U.S., Duterte said the Philippines would pursue "independent" policies separate from US interests in the region, and ordered his defense secretary to seek military gear from suppliers in China and Russia. In another dramatic shift, he also said that the Philippines would stop patrolling the South China Sea alongside the U.S. Navy, to avoid upsetting Beijing.

US Import Prices Tumble For 25th Month In A Row As China's Deflationary Impulse Hits Fresh 6 Year Lows

Great news America - it's been over 2 full years since the cost of imported goods rose year-over-year (dropping 2.2%in August as expected). The month-over-month drop of 0.2% was bigger than expected and was the first drop since February as US airfares reportedly tumbled (especially to Europe). China's deflationary contagion hit fresh 6 year lows but prices from almost every region declined.

Global Market Rout Abates As Bond Selloff Pauses, Oil Rebounds

After a sudden rout in financial markets that wiped $2 trillion in global market cap over the past week showed signs of easing, overnight stocks tried to stage another "BTFD-type" comeback with European stocks climbing for the first time in five days as oil and metals prices gained. S&P futures were modestly in green, although they faded earlier gains, on the back of a slide in the USDJPY which initially spiked to 103.31 only to fade back to the mid 102-range.

China Crushes Yuan Shorts As HIBOR Explodes 190% To 7 Month High

This morning Hong Kong’s overnight interbank yuan borrowing rate, or the yuan hibor, shot up to its highest level since February, soaring nearly threefold to 8.16% from only 2.84% on Tuesday, in what many have said was the latest salvo by the PBOC against Yuan shorts.