It Is Now the Time to Start Paying Attention

US Traders Walk In To Another Bloodbath

Lots of sellside squeals this morning following the epic bloodbath in China, where in addition to what we already covered hours ago, has seen at least five companies  (China Development Bank, Shanghai ShenTong Metro, China Three Gorges Corp., Doosan Infracore China Co. and Chongqing Shipping Construction Development) delay or cancel bond offerings as the PBOC’s admission of capital “misallocation” is slowly but surely freezing both bond and stock markets. And while the plunge was contained first to China, then to Asia, then to Europe (where the Spanish 10 Year once again surpassed 5% as expected following the carry trade unwind), with the arrival of bleary-eyed US traders the contagion is finally coming home.

In a redux of last week, 10 Year yields are shooting up, hitting as high as 2.63% a few hours ago, while equity futures are now at the lows of the session. It could turn very ugly, very fast, especially if the Hamptons crowd were to actually read the stunning BIS annual report released on Sunday, which not even Hilsenrath explaining “what the BIS really meant” will do much to change the fact that the days of monetary Koolaid are ending.

More…

Related Articles:

Stocks face whammy from China and the Fed

U.S. Stock Futures Drop; S&P 500 May Extend Monthly Slide

      
Plugin by: PHP Freelancer
This entry was posted in Editorial, Financial and tagged , , , . Bookmark the permalink.

Leave a Reply