Frontrunning: September 16

  • Deutsche Bank to fight $14 billion demand from U.S. authorities (Reuters)
  • Exxon’s Accounting Practices Are Investigated (WSJ)
  • European leaders seek elusive 'road map' after Brexit shock (Reuters)
  • Johnson Said to Tell Italy Exit Talks Likely to Start Early 2017 (BBG)
  • Brexit Bulletin: Merkel Sings the Bratislava Blues (BBG)

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.

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.

Frontrunning: September 8

  • Stock futures flat ahead of economic data, ECB meeting (Reuters)
  • Trump in TV event with Clinton, says Putin better leader than Obama (Reuters)
  • 5 takeaways from Trump and Clinton's military forum (The Hill)
  • Matt Lauer Fields Storm of Criticism Over Clinton-Trump Forum (NYT)
  • Vladimir Putin Just Wants to Be Friends (BBG)
  • Hanjin Shipping’s Troubles Leave $14 Billion in Cargo Stranded at Sea (WSJ)

Global Stocks Slide, Futs Flat; Commodities Down On Stronger Dollar As Hike Odds Reprice Higher

The dollar index rose to a two-week high on Monday, while bond yields jumped to their highest since June and global stocks sold off after senior Federal Reserve officials indicated a U.S. interest rate increase was on the cards in the near term. The Fed effect - and the stronger dollar - reverberated through markets, pressuring stocks in Europe and emerging markets, pushing oil below $47 and the commodity complex lower.

Michigan Pension Funds Boost Tesla Stake By Over 200%

"Our original $25 million position in Tesla was relatively minor, and we added approximately $50 million during the past quarter," the department said in a statement. "The additional shares did not materially add to the risk of the overall $60 billion investment portfolio."

US Futures Rebound, European Stocks Higher As Oil Rises

The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.

Government "Is" The Problem, Stupid!

Despite the fact that competition keeps prices low, the socialists think they can run education, health care, and the entire economy better than the free market. Here are two charts that show how successful, government solutions are for the citizens of this country....