‘Chickens Wanted For Epic Showdown’: Rates Vol., Gamma Are Too Cheap!

“…game theory suggests that the North Korean leadership has a strong incentive to bring forward the final phase of the Game of Chicken.”


Who’s Afraid Of ‘Rocket Man’?

She packed my bags last night pre-flight;
Zero hour nine AM;
And I’m gonna be high as a kite by then…


Kim Jong-Un looks like he’s losing his ability to move markets.

Japanese Shares Surge Amid Asia Rally As Investors Super-Excited World Didn’t End

It’s all green screens out there early on as the relief rally gathered steam in the overnight. Bottom line: Hurricane Irma wasn’t as catastrophic as feared and North Korea decided maybe it wasn’t a fantastic idea to launch another missile ahead of a new sanctions vote in the Security Council where it still enjoys the…

Asian Shares Rally, Gold Falls As Markets Breathe Heavy Sigh Of Relief

As noted late last week, things would look quite different on Monday, one way or another.

North Korea Promises ‘More Gift Packages’ As South Korean Shares Fall For 5th Day

“The recent self-defense measures by my country, DPRK, are a gift package addressed to none other than the U.S. The U.S. will receive more ‘gift packages’ from my country as long as its relies on reckless provocations and futile attempts to put pressure on the DPRK.”

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.

As North Korea Moves ICBM To Launch Site In Wheelbarrow, Kospi Falls 4 Days In A Row

Ok, so following the latest news out of the Korean peninsula, where Kim is apparently using the cover of darkness to move an ICBM fitted to a wheelbarrow to a launch site in preparation for another provocation ahead of (or on) founding day, South Korean shares fell again. 

Vol. On ‘Cheap Market With Fast Earnings Growth’ Just Spiked The Most Since ‘Fire And Fury’

So that’s all fine and good, but the thing is (and we’ve been warning about this for months), you’ve gotta wonder about an equity market that’s seen an avalanche of YTD inflows and until recently was sitting near record highs when, at least by proximity, the country it represents is the most dangerous place on earth (hyperbolic, but you get the idea).

Asian Shares Tumble, Gold Rises As North Korea Said Planning New Missile Launch

“Though considered a tail risk, a military confrontation on the Korean peninsula could see Asian currencies falling 5% to 10% and the region’s equities plunging 20%,” UBS Wealth Management Global CIO Mark Haefele and head of Asia Pacific investment Min Lan Tan write in a new note.

South Korean Stocks, Won Tumble As Traders Weigh Risks

The oil issue has been contentious for its potential to spark a humanitarian crisis. “Eyes are on whether countries will push for an oil embargo on North Korea, which in the past, has served as a trigger for physical conflict,” Takahashi adds.

After North Korea Nuclear Test, ‘Risk Of Weapon Being Used Is Highest Since Cuban Missile Crisis’

“I think that the risk of a nuclear weapon being used somewhere in the world today is higher than it has been in a very very long time, arguably going back to the Cuban Missile crisis.”

Guess Which Country’s Stock Market Just Fell For The First Time Since The Election…

So for all the talk of how risk assets have largely ignored the threat of nuclear war, we would note that not everything was in fact immune…

Trump Prepping Withdrawal From South Korea Trade Deal As Early As Next Week

Ok, so if you were going to make a list of things that Donald Trump should definitely not do right now, “start trade war with South Korea” would probably be somewhere close the top. You know, maybe right below “nuke North Korea” and right above “shut down the government until Congress funds the border wall.”…

Bloodbath In South Korea: Stocks Slide 4th Day As Foreign Money Heads For Exits

Spoiler alert: the picture is not pretty.