Asia

Overnight action saw gold jerked lower as Europe opened and Asia closed. Thanks to Nanex, we now see 'how' this occurred as the "gold spoofer" has returned. Once the spoofer disappeared, gold has rallied back up to the overnight highs... rigged?

75 gold futures contracts used to "spoof" prices lower...

Via Nanex

And once the spoofer left the building...

It seems $1200 is the line in the sand once again.

• Futures rise as oil gains hold steady (Reuters)
• China promises economic stability as G20, parliament loom (Reuters)
• Obama scolds Senate Republicans for Supreme Court threat (Reuters)
• China Deploys Missiles on Disputed South China Sea Island (WSJ)
• China Ramps Up Rhetoric, Plans New Steps to Juice Up Economy (BBG)
• China Loses Control of the Economic Story Line (WSJ)
• Banks are still the weak links in the economic chain (FT)
• The Great Iron-Ore Flood Claims Anglo as Biggest Victim (BBG)

It has been a morning session of two halves.

In Asia, the mood was somber, and stocks fell with the Shanghai Composite (+1.1%) outperforming on another late session binge-fest by the National Team, and the Nikkei 225 (-1.4%), Hang Seng -1%, Kospi -0.2%, ASX -0.6%, Sensex -0.4% and the South Korean Won all down following news of the biggest Chinese Yuan devaluation in five weeks.

One day after markets saw a violent return of optimism, which sent stocks around the globe and US equity futures soaring (the US was closed for President's Day) driven by terrible Japanese and Chinese economic data which in turn hinted at more central bank easing, animal spirits have cooled off despite some truly unprecedented Chinese credit numbers.

Submitted by Constantin Gurdgiev via True Economics blog,

Global growth leading indicators are screaming it, Baltic Dry Index is screaming it, PMIs are screaming it, BRICS are living it, and now Ifo surveys are showing it: global economy is heading into a storm.

The latest warning is from the Ifo World Economic Climate Index.

Per Ifo release: