As usual, the docket is full and the risks are multiplying.
Category: europe
Sonny Black.
Fuhgeddaboudit.
Mild Turbulence.
Fasten your seatbelts.
If Someone Doesn’t Explain Why Stocks Are Lower, You Might Just Have To Buy Gold
In a testament to the fact that, contrary to what Mario Draghi said in Washington last weekend, investors do not in fact believe that stocks can go down as well as up, there’s a mad scramble on Thursday morning to explain what’s going on.
Markets Shudder Across The Globe As Worst Case Scenario Materializes In Spain
Now it gets interesting.
Stark Raving Mad.
“Let me in.”
‘Good Luck Out There’: Full Week Ahead Preview
Oh, boy. Try to wrap your head around all of this.
ECB Will Cut QE In Half, But You And Draghi Can Still Netflix And Chill For 9 Months
Yes, “very gradually.” Or preferably “not at all.” But like the Fed, they’re going take some baby steps and see how things go.Â
Close Your Eyes And Buy.
Don’t worry about the orange man.
Risks Aplenty.
And now, back to your regularly scheduled programming…
Calm Before The Storm.
Although you’d be forgiven for asking where the “calm” was.
Nothin’ But A Dumb Bear.
“Smack! Smack!”
Geopolitical Rubber (Bullet) Hits The Road: Catalonia Shocks Market
Or is this just another bump in that familiar road to new highs for global equities?Â
‘What’s The Worst That Can Happen’? Pandora’s Box And The ‘Balkanisation’ Of Spain
“If he loses support in parliament, there’s an outside chance that this could topple the government and create unexpected political risks.”
Hurricane Damage: Full Week Ahead Preview
Ok, well it’s Sunday which means, barring Trump wandering into a nuclear war in the next several hours, tomorrow will be Monday. This week they’ll be a lot of talk about…
‘A Fly In The Ointment’ But Nothing To Worry About, Apparently…
“We would characterize existing political risks as of the run-of-the-mill variety that investors always face and a far cry from the high-stakes political events of the past several quarters (events that markets navigated with aplomb.”
Don’t Forget About The Perverse Dynamic In The Euro
And that’s the irony here.
Still One Of My Favorite Trades
“This might seem trite, but the scariest thing in today’s market is currency strength. No one wants it. No one can afford it.”
‘Keep One Eye On Left Field’: Here Are The Most Important Q4 Market Themes
“As always, keep one eye on left field for the “unknown unknown” that could shift the market’s thinking.”
‘Investors Have Been Ignoring This Story,’ But That’s About To Change
“The beginning of the euro’s impressive rally coincided with Emmanuel Macron winning the French presidential election and thereby quashing political fears in the region. A correction in the euro is now likely to coincide with Spain and Germany bringing those risks back into the light.”
‘This Looks Less Market-Friendly Than Expected’: Will German Results Weigh On Euro?
To be sure, this looks like it will hit the euro in early trading. The single currency will likely knee-jerk lower against both the yen and the franc and you can expect to see a flight-to-safety bid in fixed income.
Just Make Sure You’re Hedged.
You’d probably be wise to do the same.
Make Risk Great Again.
Now stay tuned to find out if Kim bought some VXX today on the cheap so he can fire off an ICBM this evening and make a few million to put towards his next H-bomb.
ECB Leaves Everything Unchanged – Eyes Turn To Draghi
But you’ve got to think Mario Draghi isn’t looking forward to Thursday’s presser.
Although no one expected any actual change to policy rates or the APP, markets are expecting quite a lot in terms of outright jawboning, telepathy, side-eyes, winks, nods, or really anything at all to suggest that the ECB is going to try and keep a lid on euro strength and/or is prepping an exit plan from stimulus.
Death By A Thousand Cuts.
The bottom line is that between another powerful hurricane approaching the U.S. mainland, U.S. markets catching up with their global counterparts in terms of pricing in North Korea after the long weekend, the DACA decision which portends more bickering in Washington, and the looming debt ceiling debate (with the specter of a technical default showing up in today’s decidedly poor 4-week bill auction), it was death by a thousand cuts.
Holiday Road.
“Well, that’s nothing to be proud of, Rusty…. 50 yaaaards.”
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