LIBOR

Global Stocks Rise Amid Unexpected ECB "Trial Balloon"; Dollar Flat Ahead Of Fed Minutes

European markets continued their risk-on trend in early trading, rising to the highest in over a week and rallying from the open led by mining stocks as industrial metals spike higher after zinc forwards hit highest level since 2007. The EUR sold off sharply, boosting local bond and risk prices after the previously discussed Reuters "trial balloon" report that Draghi's speech at Jackson Hole would not announce the start of the ECB's taper.

Risk Off: Global Stocks Slide As "Fire And Fury" Results In "Selling And Fear"

US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday's sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks.

$350 Trillion In Securities In Limbo: LIBOR To Be Phased Out By 2021

Unofficially, Libor died some time in 2012 when what until then was a giant conspiracy theory, namely that the world's most important reference index had been rigged for years, was confirmed. Officially, Libor died earlier today when the top U.K. regulator, the FCA announced that Libor would be phased out by the end of 2021.

Frontrunning: July 27

  • Healthcare showdown (Reuters)
  • Tax Overhaul in Doubt With House Stuck on Budget Disagreements (BBG)
  • Dollar steadies after Fed skid, shares hit new highs (Reuters)
  • Samsung Is Closing In on Apple as World’s Most Profitable Tech Firm (WSJ)
  • Sweden's PM Refuses to Resign After Cyber-Security Scandal (BBG)

Will Central Banks Derail The Shale Boom?

The U.S. Federal Reserve has already increased interest rates several times, most recently in June, with promises to do much more. Rate hikes pose a problem for the oil industry, which has used debt to underpin a drilling boom across the U.S. shale patch. Higher rates could raise the cost of drilling.

Qatar Is Running Out Of Dollars

"We have no dollars because there is no shipment or transportation from the United Arab Emirates. There is no stock," said a dealer at the Qatar-UAE Exchange House in Doha's City Center mall. "The shipment is blocked from the UAE."