Anonymous ID: bb06b2 May 6, 2019, 5:31 a.m. No.6427419   🗄️.is 🔗kun

Global Stocks Crash As Trade Talks Collapse

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The S&P closed on Friday at a new all time high, with hardly a concern in the world and nothing but blue skies ahead… and then just two tweets from Donald Trump shortly after noon on Sunday afternoon shattered the market's idyllic picture, when the US president admitted that trade talks with China are not only not going "optimistically", but have effectively collapsed and tariffs on Chinese imports would be hiked.

(some headline's say this is all POTUS' fault however not the case as munchkin's has been running this and all we have ever seen out of his 'effort' is an endless stream of PR release's that say it's close to being done, with no real progress POTUS had to do something <3

 

Trump sharply escalated tensions between the world’s two largest economies with tweeted comments on Sunday that trade talks with China were proceeding “too slowly”, and that he would raise tariffs on $200 billion of Chinese goods to 25 percent on Friday from 10 percent. The tweets stirred up the near-record calm market mood arising from signs of improving economic growth in China and the United States, and from comments from Trump and other senior U.S. officials that trade talks were going well.. while futures on the S&P 500 index sank as much as 2.2 percent, tumbling back below 2,900 and approaching the 2,890 level where dealer gamma turns negative, and any continued selloff will only lead to further selling.

European stocks tumbled to a one-month low, suffering their biggest drop of the year.

Even as Beijing tried to salvage some clam, when China’s foreign ministry said on Monday a delegation was still preparing to go to United States for trade talks, but was unable to confirm when amid signs that a delay is now being considered, the benchmark index in Shanghai crashed 5.6%, with the Shanghai Composite suffering its worst day since February 2016 and sliding back under 3,000 even after Chinese state-backed funds were said to have been active in an effort to limit the sell-off.

Market Snapshot

 

S&P 500 futures down 1.9% to 2,893.00

STOXX Europe 600 down 1.4% to 384.90

MXAP down 1% to 161.39

MXAPJ down 1.8% to 531.42

Nikkei down 0.2% to 22,258.73

Topix down 0.2% to 1,617.93

Hang Seng Index down 2.9% to 29,209.82

Shanghai Composite down 5.6% to

2,906.46

Sensex down 0.9% to 38,608.08

Australia S&P/ASX 200 down 0.8% to

6,283.73

Kospi down 0.7% to 2,196.32

German 10Y yield fell 1.8 bps to 0.007%

Euro down 0.09% to $1.1188

Italian 10Y yield rose 0.9 bps to 2.19%

Spanish 10Y yield fell 1.2 bps to 0.972%

Brent futures down 1.5% to $69.79/bbl

Gold spot up 0.3% to $1,283.07

U.S. Dollar Index up 0.1% to 97.59

 

The result, discussed overnight, was a "sea of red" as risk assets and currencies across the globe collapsed, offset by a flight into safe assets including Treasuries and the US dollar. The MSCI world index fell half a percent.

(Of course Oil catches a bid-can't let all those freshly minted bonds from aramco see any type of drop)

BTW one of the under-wrtiter's of that sale Moelis and Co has seen it's executive's starting to sell share's-just after shoving that bloated POS out the door-in meme folder along with the rest of them posted here

Top Asian News

 

Bharti Is Said to Kick Off IPO of $5 Billion

Africa Arm in May

Japan Set for Golden Week Hangover as

Trade War Roils Markets

Tencent-Backed DouYu Is Said to Delay

Launch of $500m U.S. IPO

Philippines Targets $500M From First Euro

Bond Sale Since 2006

 

US Event Calendar-

(slow day for data, so nothing can be blamed on the system or the result's it produces)

 

Nothing major scheduled

9:30am: Fed’s Harker Speaks on the

Economic Outlook

 

 

https://www.bloomberg.com/markets/stocks/futures

https://www.dailyfx.com/crude-oil

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

 

The move in the ten year note, cap #4, is showing the movement as reflected in CME futures last night/afternoon when all this got started, very little has traded and will not until 9:30amEST

This last's anything longer than 2.5 day's, the drops, the margin call's will be going out and that mean's even moar selling.

Anonymous ID: bb06b2 May 6, 2019, 6:05 a.m. No.6427554   🗄️.is 🔗kun   >>7632

Lira Plunges Below 6 As "Turkey Nears The Rubicon"

It was only a matter of time.

 

With the Turkish central bank rapidly running out of foreign reserves to deflect a tsunami of domestic lira selling, now that its pig lipsticking gimmicks have been exposed to the entire world, it was not a question of if but when the lira would crack and again tumble below 6 against the dollar.

 

That "when" was this morning, as Turkey’s currency suddenly plunged below 6.00 per U.S. dollar, triggering a volley of stop selling and touching its lowest level in almost seven months as authorities considered holding a new contest for the Istanbul mayor’s seat amid fraud allegations over the March election,

The immediate catalyst was also known: over a month after Erdogan lost a local election in the country's top two cities, Turkey’s top electoral body has been under fierce pressure from President Recep Tayyip Erdogan as it nears a decision on whether to order a new contest for the mayor’s seat in Istanbul, a ruling that according to Bloomberg could inflict more damage on the economy by prolonging political turmoil.

 

Dozens of judicial investigations into alleged fraud in the March 31 municipal vote have also turned up the heat on the High Election Board, which may decide on the ruling party’s demand for a revote as early as Monday. Along with a setback in Turkey’s commercial hub, Erdogan’s AK Party also lost other key cities to the opposition, including the capital, Ankara.

 

Accelerated by the global market rout, the rising political uncertainty has sparked an exodus in Turkish assets while slamming the stagflating economy. The logical result: the continued collapse in the lira, which only avoided a plunge as the central bank intervened aggressively in the open market; the TRY has now depreciated for four consecutive weeks following the elections and is now well below the key psychological level of 6 per dollar Monday morning.

Furthermore, as Goldman notes, the USDTRY formed a "golden cross", which is when a security’s 50-day moving average rises above its 200-day reading.

 

Technicals aside, all eyes are on the fight for the fate of Istanbul, where the ruling party’s loss would mark the biggest electoral defeat yet for Erdogan, who came to prominence as mayor of Turkey’s biggest city in the 1990s. Erdogan has refused to accept the vote’s outcome because he says election laws were violated when private-sector employees instead of civil servants were enlisted as ballot box officials.

 

The looming decision will serve as a litmus test for “the maturity of Turkey’s democracy,’’ according to Sinan Ulgen, chairman of Edam, an Istanbul-based think tank.

 

“If the board rules to renew the elections in Istanbul, they need to have a clear and acceptable reason that is in line with the law and public conscience,” he said. “Should the board defy that, it would mean a step backward for democracy.’’

 

While in the weeks following the election, Erdogan occasionally appeared to concede that Istanbul was lost, in recent days his rhetoric turned more aggressive and his calls for a fresh vote became more vocal after Devlet Bahceli, the head of a nationalist party that formed an alliance with Erdogan’s AKP, called new elections in Istanbul a matter of “survival.”

 

Meanwhile, Istanbul’s chief prosecutor sparked flashbacks to the fake "failed coup" of 2016, when he bolstered Erdogan's argument over the weekend, alleging that dozens of those officials were found to be linked to a group that Turkey accuses of staging a failed coup attempt against Erdogan almost three years ago. The opposition dismisses the allegations as being an excuse for the government’s inability to acknowledge defeat. Turkey’s state-run media said Sunday that 43 suspects in a judicial probe of alleged Istanbul election irregularities were linked to that group, led by US.-based preacher Fethullah Gulen.

 

As Bloomberg adds, two of the 43 had an encrypted messaging application called ByLock that’s widely used by other Gulenists, Anadolu news agency reported, citing information from Istanbul’s chief prosecutor. The rest of the suspects were found to have deposited savings in a now-defunct lender allegedly run by Gulenists in the past, Anadolu said.

 

So there you have it: for all those long the carry-rich Lira, mostly Mrs Watanabe(a euphemism for retail japanese trader's-but it's really the BOJ) and various clueless retail investors, you can now blame Gulen for your ongoing P&L woes.

 

Once that happens, we wish the IMF the best of luck once Turkey disintegrates and Lagarde tries to wrest control from Erdogan over the local imploding economy.

https://www.zerohedge.com/news/2019-05-06/lira-plunges-below-6-turkey-nears-rubicon

See here

Turkish watchdogs to probe JP Morgan after lira plunge

https://www.reuters.com/article/us-turkey-banks/turkish-watchdogs-to-probe-jp-morgan-after-lira-plunge-idUSKCN1R40OS