Japan

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.

The Bank Of Japan Unleashes Chaos

"...even if we have the press release listing exactly what the BoJ was going to do, the market response to various policy mixes is such a coin-flip that it’s nearly impossible to prognosticate."

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.

Dow 100,000? Marc Faber Warns: Central Banks "Will Monetize Everything... Introduce Socialism"

"...the madness in the present time may go on. In a manipulated market, it won’t end well... They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism, which is state ownership of production and consumption. You would have that, yes, that they can do...I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present."

USDJPY Spikes On Week Old News, Pulling Stocks Higher With It

It's 2am in Japan and Nikkei has decided - right as the 30Y Treasury auction hits - to unleash a spurious headline - BOJ TO EXPLORE DELVING DEEPER INTO NEGATIVE RATES... Which of course is 'old news' - but don't tell the Algos.

5 Charts For Fully Invested Bears

“The funny thing is there is a disconnect between what investors are saying and what they are doing. No one thinks all the problems the global financial crisis revealed have been healed. But when you have an equity rally like you’ve seen for the past four or five years, then everybody has had to participate to some extent. What you’ve had are fully invested bears.”

Dow Futures Slide Over 100 Points Despite Fed's Dovish Relent; Oil Drops On IEA Pessimism

After yesterday's torrid rally, which sent stocks higher the most in 2 months on the back of Lael Brainard surprisingly dovish comments, we have seen an unexpected profit-taking session overnight in ES, with US equity futures down 0.6%, driven largely by a renewed drop in oil prices which slid after the IEA said a surplus in global markets will last longer than initially estimated, persisting well into 2017 as reported previously.

"The Financial Crisis Has Morphed Into A Growth Crisis" - Rogoff Warns "Cash Is Not Forever, It's A Curse"

"Big bills are a curse... understand this: Cash is not forever... in fifty years there will be no cash... it’s one very important step towards enabling central banks to have much more effective tools in fighting a financial crisis and in particular to use negative interest rates in an effective way... people who are older need to think about having a larger share of stocks than the traditional wisdom..."

A Homerun For The Donald - Attack The Fed's War On Savers, Workers And The Unborn (Taxpayers)

"Indeed, the Fed is waging an insensible and outrageous war on savers, workers and future taxpayers - even as it pleasures the 1% with fantastic financial windfalls from the Wall Street casino. Now that is a rigged system. And that is a beltway evil that merits the Donald’s unrelenting attack on behalf of the citizens of Flyover America who have been left behind in their tens of millions."