Looks like China may have lost control of their debt saturated economy and rigged financial markets. It surely couldn’t happen here in the good ole US of A. We have honest free markets. Right? Debt isn’t a problem for us. Right?
It seems futures are down a tad in the U.S. – 400 points. Someone call the PPT at the NY Fed and tell them to buy, buy, buy. Where’s Ben B when you need him? Oh yeah – he’s making a $300,000 speech at a Goldman Sachs luncheon about how he saved the world.
Here We Go Again: China Halts Trading For The Entire Day After Another 7% Crash
Submitted by Tyler Durden on 01/06/2016 20:25 -0500
Chinese traders unsure what to do for the rest of the day
“I won’t short the CSI 300 again I promise”
Happy New Year…
Chinese traders are unhappy:
- Circuit breaker may be triggering “herd effect” and intensifying panic, investors may accelerate selling after 1st trading halt as they seek liquidity: Galaxy Sec. strategist Sun Jianbo
- “There seems to be considerable anxiety in the mkt with investors selling as a preventive measure,” Shenwan Hongyuan Group director Gerry Alfonso
- Investor confidence is on “shaky ground” due to negative factors incl. sharp depreciation in yuan, oil price slump and overnight losses in overseas equity mkts: Central China Sec. strategist Zhang Gang
- Threshold being hit too easily in China, adding “liquidity fears” in mkt: Catherine Cheung, Head of Investment Strategy & Portfolio Advisory at Citibank Global Consumer Banking
Crude crashes to a $32 Handle…
Gold just surged to $1100…
The punishment will continue until The Fed unleashes QE4!!
* * *
*CHINA STOCK SLUMP TRIGGERS TRADING HALT AS CSI 300 FALLS 5%
US Equity markets are tumbling…
And USDJPY is in free-fall…
Someone just stepped into support the Offshore Yuan…
As we detailed earlier:
Following the collapse of offshore Yuan to 5 year lows and decompression to record spreads to onshore Yuan, The PBOC has stepped in and dramatically devalued the Yuan fix by 0.5% to 6.5646. This is the biggest devaluation since the August collapse. Offshore Yuan has erased what modest bounce gains it achieved intraday and is heading significantly lower once again. Dow futures are down 100 points on the news.
PBOC fixes Yuan at its weakest since March 2011… with the biggest devaluation since August
And Offshore Yuan collapses…
This all has a worrisome sense of deja vu all over again… We have seen this pattern of money flow chaos before… Outflows surge from China, send liquidity needs spiking, which bleeds over into Saudi stress (petrodollar?), causing unwinds in major equity markets (thanks to deleveraging of carry trades) in China and then US stocks…
Chinese stocks are opening down hard:
- *SHANGHAI COMPOSITE INDEX FALLS 4.01%
- *SHANGHAI COMPOSITE EXTENDS DROP TO 10% BELOW DECEMBER HIGH
- *HANG SENG CHINA ENTERPRISES INDEX FALLS 3.03%
- *CHINA CSI 300 INDEX FALLS 4.05%
Hold your breath. Dow futures plunged 100 points on the news…
Gasoline is still $2.30/gal in my little corner of paradise. I am glad I backed up the truck on PM’s though. I’m going to miss these prices it they bolt!
@admin, are you offering any timeline for next implosion?
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Can this be translated into Chinese?
A stock market run at the whim of Commies…what could possibly go wrong?
Watch the BDI. Our friends husband is a captain for one of the large container freighters out of Thailand. He hasn’t piloted a ship in almost 3 months. Even the harbor masters and tugs are slowing way down.
“The financial carnage continued once the European markets opened. Markets were red all across the continent, and things were particularly bad in Germany. The DAX was down 459 points, and it is rapidly approaching the psychologically-important 10,000 barrier. Overall, it was the worst start to a year that the European markets have ever experienced.”
“South Korean exports have traditionally been considered a key leading indicator for the entire global economy, and on Monday we learned that they were down a whopping 13.8 percent in December from a year earlier…
One of the more reliable indicators of the global economy continues to confirm fears of a worldwide slowdown.
South Korean exports — also referred to as the world’s economic canary in the coal mine — fell 13.8% in December from a year earlier.
This was a deterioration from the 4.8% decline in November, and it was much worse than the 11.7% decline expected by economists.
The “nothing is happening” crowd may not be willing to admit it yet, but the truth is that a major global economic slowdown is already happening.”
On stockcharts.com, the symbol for BDI = $BDI
“Monsanto announced Wednesday that sales in the company’s agricultural productivity segment, which includes its probable carcinogen Roundup herbicide, fell 34 % to $820 million. Monsanto’s shares fell over 2% as a result.
The Biotech giant also said Wednesday that it now plans to cut a total of 3600 jobs, or about 16 % of its global work force, through fiscal 2018, and expects to record $1.1 billion to $1.2 billion in restructuring charges.”
“Where’s Ben B when you need him? Oh yeah – he’s making a $300,000 speech at a Goldman Sachs luncheon about how he saved the world.”
Actually, Bernanke is busy trying to absolve himself from his role in the currency wars: http://www.brookings.edu/blogs/ben-bernanke/posts/2016/01/05-currency-war-daddy?
China:
Do not gloat. They do not owe anybody for debts.
No country can go in there and steal their land and
resources for unpd. monies. The USA is riddled with
debt. There will be war. As per the TPTB plan.
Susanna’s on to something………..
China also has “Yankee paper” in exchange for all that stuff they sent over here. Paper that’s going to become worthless in due time.
We all have a front row seat to the most interesting time in our history!!!
Enjoy!!!
From the daily Pfenning:
“In the good ol USA the October Trade Deficit was revised upward to $44.6 Billion from $43.9 Billion.
I also believe that 4th QTR GDP will drop to 1.1% from 2.1% Total exports dropped -0.9%, and imports fell -1.7%…
Now this tells us two things, folks, so get a piece of paper so you can write this down.
Exports are down because the dollar is too strong, for its fundamentals, period, and imports are down, because the U.S. Consumer isn’t spending like the Fed, and the Gov’t needs them to!
If this pattern keeps up, we’ll be in recessionville before you can shake a stick at it!”