tyb's
Luckey Friday The 13th? S&P Futures Limit-Up, Europe Soars Most Since After China Emergency RRR Cut
After collapsing to fresh cycle lows overnight, sliding below 2,400, or down a remarkable 1,000 points in just over three weeks, S&P futures have staged an even more amazing comeback and one day after a historic crash, the Emini is now trading limit up, stuck at 2,582 (or up 5%)…What sparked the reversal in sentiment? It is unclear but the buying started just after midnight Eastern time, amid speculation of BOJ intervention across various markets. A key catalyst hit just after 5am ET, when following failed interventions by the ECB and Fed, China’s central bank was the latest to come out with emergency measures when the PBOC announced a targeted RRR cut of 50bp-100bp for banks qualified in "inclusive finance" tests, effective March 16, which will release liquidity of RMB 400bn. An additional 100bp cut will be granted for qualified joint-stock commercial banks, unleashing liquidity of RMB 150bn to the market. This, as Goldman notes, was expected after Premier Li’s comments at the State Council meeting on the need to implement target RRR cuts to lower financing costs for small and individual businesses.
Still, there will likely be some buyer remorse disappointment, as the total of RMB 550bn liquidity injected is less than previous RRR cuts (e.g., RMB 800bn effective January 6). But the pattern of the PBOC cutting RRR after Premier Li's comments remained in line with historical precedents. Furthermore, as we highlighted yesterday, the PBOC statement also mentioned the central bank would avoid "flood-like" stimulus, consistent with the article discussing monetary policy in the official newspaper People's Daily on Monday.
Additionally, in Goldman's view, the PBOC has been cautious in targeted easing and doing just enough in recent weeks. This is reflected in the February money and credit data where short-term loans to companies jumped on PBOC relending programs while medium and long-term loans lagged. Given the deteriorating ex-China growth and external demand, the PBOC will need to do more to support the economy, although how much will be done remains to be seen. With the targeted cut today, the PBOC is highly unlikely to announce any broad RRR cut by the end of Q1, in our view.
Whether its positive impact sustains or not remains to be seen, but the RRR cut comes after an out-of-meeting cut from Norway and liquidity measures from the Riksbank, while other Asian central banks including those of Korea, India and Japan, moved to soothe markets.
There was more: one day after European stocks plunged the most on record, they have staged a just as historic rebound, with the Stoxx 600 surging 7.3%, or the most since Nov 2008, after the German Finance Minister Scholz said "we will use all means to tackle the coronavirus; will provide tax relief to Co's including deferrals, tax aid will cost billions. Will, without limit, undertake credit programs" while Germany's Economy Minister Altmaier said around 500 billion Euros are available. Earlier in the session, Asian stocks fell, led by industrials and utilities, after falling in the last session. Most markets in the region were down, with Japan's Topix Index dropping 5% and South Korea's Kospi Index falling 3.4%, while Australia's S&P/ASX 200 gained 4.4%. Trading volume for MSCI Asia Pacific Index members was 33% above the monthly average for this time of the day.
https://www.zerohedge.com/markets/sp-futures-trade-limit
https://www.bloomberg.com/markets/stocks/futures
https://www.kitco.com/charts/livegold.html
https://www.marketwatch.com/investing/bond/tmubmusd10y
https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart
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I don't do date faggin 'cause that is fatal but it is interdasting that some of the proofs that have come through about the declass (supposedly) on the 17th would coincide with the start of the latest FOMC mtg.
that's why datefaggin is datefaggin. Just a random thought.
with that you can apply the over-used mantra from the real estate biz…it's always a good time. Don't look at the price as that will drive you nuts. Once you have it…you have it.
it certainly would. I'm all for ending sooner rather then later-but I also understand it has to be done right. they get a a little moar time with those actions but not much. Sort of waiting for DB to off-load moar crap to one of our banks again
>I've been waiting for many years for this thing to GO TITS UP
as have I anon. almost 20 years(and know many have waited longer) once I got to the point of understanding how it was put together.
It's just digital 0's and 1's to contain the flood of shitty debt. Too many people think this is actual cash…it's not and not saying you think that.
>Keep in mind, the other option was fierce violence
has always been in and on my mind. We don't need that but I completely understand it.
that how it HAS to be. Funny you mention that as it was that entire situation that put a bow on it for me. I kept saying to myself how in the hell did germany ever agree to this shit?- got our answer a few years later. Just glad I saw that continent already. Still have some marks/francs-both-in a drawer too.
my first school book report was on Kennedy in the 70's and I contacted the library (with help) and rec'd some stuff from them. I wish I still had it. I still remember thinking how sad that all was-and at a young age too. was born a few years after. Have always been drawn to him in a way. his quotes always made way into presentations/speech's I've done.