Year-end liquidity fears remain front and center as the $25 billion operation proved to be roughly 40% below the required size to satisfy all liquidity demands.
Either the economic data is about to take a sharp turn higher, or the market is set up for a rather large disappointment when the expected earnings growth in the coming quarters doesn’t appear...
The race enters its final lap as traders now have just a handful of trading days to outperform the S&P in a year that has left everyone dazed and confused.
"I had been waiting for a while for the shoe to drop and now it has started to fall towards the floor, revealing that core CPI inflation in the US is closer to zero than many assumed."
"Sources with direct knowledge of the trade talks told the Global Times on Saturday that the U.S. must remove existing tariffs, not planned tariffs, as part of the deal."
Equity CTA long positions have already reached the levels last seen in mid-October 2018, and they have been steadily hiking their leverage ratios. Meanwhile bonds CTAs have stopped selling and may resume buying soon.
A subversive attempt by America to divert global portfolio investment from China by destabilising Hong Kong will force China into a Plan B to fund its infrastructure plans...hastening the end of the dollar as the world’s reserve currency...