Dimon Buries Trump Feud, Compliments President’s Strategy On China

If Wall Street titans can find one silver lining in this week’s market rout (the longest stretch of sustained losses for US stocks since November 2016), the stunning, seemingly unprovoked, drop should at least serve as a reminder of just how good they have had…

“It’s Just Beginning”: US Futures Plunge As Global Rout Hammers Asia, Europe

It is a sea of blood red this October morning as the biggest market rout since February and the longest selloff of the Trump administration triggered a surge of global selling from the U.S. through Asia and spreading to Europe on Thursday, with markets from…

When Do Equity Investors Go Back To Bonds? Here Is BofA’s “Magic Number”

One of the traditional responses to the recent bond rout is that at some point yields should become attractive enough to prompt a rotation out of stocks and back into bonds. A quick comparison between the 10Y Treasury yield and the yield on S&P dividends…

BOJ Unexpectedly “Stealth Tapers”, Sparking Japanese Bond Selloff

The global bond rout accelerated overnight, when Japan surprised the market – which had been already on edge over the BOJ’s tightening intentions – with an announcement to further “stealth taper” its QE by trimming its buying of bonds due in more than 25 years…

Why One Bank Thinks The Fed Has No Choice But To Launch QE4 Next Year

With the current Emerging Market rout growing stronger by the day as the dollar surges, crushing carry trades left and right and sending EM currencies plunging, in the process validating the June warning from RBI governor Urjit Patel who warned the Fed that continued liquidity…

Stocks Pop On Trade-War Ceasefire Hopes, Yield Curve Crushed As ‘Policy Error’ Looms

Just seemed appropriate… China stocks continued their rout overnight…   European Auto stocks soared today on the heels of an unsubstantiated report on zero tariffs from a German paper…   US Equities also gained on the day – on hopes that trade war talks with…

Italian Bonds Tumble, Triggering Goldman “Contagion” Level As Political Crisis Erupts In Spain

When it comes to the latest rout in Italian bonds, which has continued this morning sending the 10Y BTP yield beyond 2.40%, a level above which Morgan Stanley had predicted fresh BTP selling would emerge as a break would leave many bondholders, including domestic lenders…

Easing Bond Rout Stabilizes Global Markets, But Surging Dollar Keeps Traders On Edge

Following yesterday’s rate spike-driven market rout, S&P futures have steadied alongside European stocks as global markets stabilized thanks to an easing in the bond selloff, leading to speculation that the worst may be over.  US equity futures were all roughly unchanged on Wednesday morning as…