China relaxes #Covid-19 controls, allows home isolation for mild and asymptomatic cases - SCMP, China’s Politburo Shifts Focus to Boosting Economic Recovery
BIS report : There’s a hidden risk to the global financial system embedded in the $65 trillion of dollar debt being held by non-US institutions via currency derivatives, according to the Bank for International Settlements. In a paper with the title “huge, missing and growing,” the BIS said a lack of information is making it harder for policy makers to anticipate the next financial crisis. In particular, they raised concern with the fact that the debt is going unrecorded on balance sheets because of accounting conventions on how to track derivative positions.
Germany arrests 25 accused of plotting coup
Switzerland could ban electric vehicle use during energy crisis: reports
Sunak convinces US to double its gas exports to UK to slow sky-high energy bills
German yield curve most inverted since 1992, 2s10s -21bps, recession calls from many in media
U.S. lawmakers ease planned curbs on Chinese chips amid corporate pushbacks
RBI Chief Das: Main Risk Is Core Inflation Remains Sticky and Elevated
Markets :
Crude lower again, talks of massive spec liquidation going on, Bridgewater etc, now nearly 40% below peak in June !
Chinese equities are still trading more than one full standard deviation below the historical average....this after the recent rally of nearly 30% of last 6-8 weeks.. that's how cheap they were... and still are
SPX500 kep perfect scenario on charts, tested trend resistance and 200dma's and failed (see below, 3925 short-term support still vs 4'50/75 area resistance, you'd think something will give past FOMC - or maybe bothsides!
USD firmer post ISM services data, which was stronger than expected, not what the market was looking for, hence reaction in risk and USDollar, the risk from here is data remains strong(er) than expected and so does inflation, and the recent bond move on basis of 'peak inflation' reverses after FOMC - that's what the market is worried about again
Dollar debt in FX swaps and forwards: huge, missing and growing (bis.org) >>> as usual these things would weaken some risk assets sharply and create a USDollar shortage as has been many times before (1997, 2008 - after US accounting change...), the real point is many of these swaps you don't have to MtM, the rules allow you NOT to (accounting relief etc), these swaps are usually long dated swaps so you don't have to worry too much (cough..)until it's time to roll them or settle them, just pray it's going to be okay...
Ironic Capital on Twitter: "Latest Zoltan Pozsar: “Oil, Gold, and LCLo(SP)R”. PDF: https://t.co/d1aDCoLPqx https://t.co/5ULTljZk4S" / Twitter >>> "Russia’s decision to link gold to oil could bring gold back as a settlement medium and increase its intrinsic value sharply... Banks active in the paper gold market would face a liquidity shortfall."
SPX500 tested top of the range, 200dma's
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