Who’s Afraid Of The ‘Dandong’? ‘The Real Market Is Coming Out’ In China
Some folks are defaulting.
Some folks are defaulting.
“No one should bottom fish before a clear floor appears.”
“The answers point to a still tentative but nascent picture of markets that want to test the bullish dollar, higher yields and stop fixating on the equity correction you just know is coming.”
See there? That’s the reflation narrative coming back!Â
Fasten your seatbelts.
According to the latest read on this, the potential for an ETP rebalance to cause problems is still near record highs.
“…as for this morning’ ‘it’s quiet, too quiet’ is the only quote that comes to mind.”
“But let us not digress”…
Oh, boy. Try to wrap your head around all of this.
And now, back to your regularly scheduled programming…
Although you’d be forgiven for asking where the “calm” was.
“To be a moron.”
That said, being aware is infinitely better than being oblivious.
I’m not sure it will ultimately be enough to get the job done, all things considered, but the PBoC’s decision to effectively remove a barrier to speculation against the yuan (that’s a crude way to describe it, but it gets the point across) by cutting a reserve requirement put in place in the days following the devaluation in 2015 seems to have succeeded in putting the brakes on the rally – if only for a day.
“None more so than the Chinese Yuan. Although most hedgies were all betting on a massive decline, the Yuan has been strengthening like Lance Armstrong after visiting his bio-chemist.”
And to let Jitipol Puksamatanan – a Bangkok-based strategist at Krung Thai Bank – tell it, the only thing that’s going to stop this train is war.
While there’s no way to know, ahead of time, if “this time is different” in
Ok, I don’t know how much figurative “stock” you put in Mitch McConnell’s Monday promise that
Heads up, it is ugly out there folks.
And now back to your regularly scheduled rally.
Ok, well good news: we’ll get a break from potentially market-moving scheduled events this week.
“…probably a result of thin market conditions ahead of the month-end and the market continued to function normally.”
CHINA JULY MANUFACTURING PMI AT 51.4; EST. 51.5
Everyone “is focusing on the positivity in the minutes, and talk of neutral rates at 3.5%, is well above market pricing”…
And remember, “China”, “deleveraging” and “concerns” are not three words you want to hear in the same sentence first thing in the morning…
CHINA 2Q GDP GROWS 6.9% Y/Y; EST. 6.8%
CHINA 2Q GDP GROWS 1.7% Q/Q; EST. 1.7%
CHINA JUNE INDUSTRIAL OUTPUT RISES 7.6% Y/Y; EST. 6.5%
CHINA JUNE RETAIL SALES RISE 11.0% Y/Y; EST. 10.6%
“Many risk assets are ripe for a correction from elevated levels and North Korea’s latest provocation provides sufficient excuse for traders to act.”
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