Submitted by Pater Tenebrarum via Acting-Man.com,
Damned If You Do…
After waking up on Thursday, we quickly glanced at the overnight market action in Asia and noticed that the Nikkei had tanked rather noticeably. Our first thought upon seeing this was “must be the yen” – and so it was:
June yen futures, daily – taking off again – click to enlarge.
Exceprted from One River Asset Management's Eric Peters,
“We have created new tools to determine whether an economy may be pursuing foreign exchange policies that could give it an unfair competitive advantage against the United States,” announced the Treasury, late Friday.
“China, Japan, Germany, and Korea will be closely monitored as a result of a material current account surplus combined with a significant bilateral trade surplus with the United States."
Following what was one of the most volatile Q1’s on record, Q2 kick started the second quarter on a positive note in April. According to DB (whose stock has failed to meaningfully rebound from recent lows) while performance didn’t quite match those lofty gains made in March, in the face of a number of key central bank meetings and also the commencement of earnings season in the US and Europe – for which expectations were low – risk assets in particular have shown a reasonable degree of resilience on the whole.
It has been a busy weekend for mostly negative newsflow.
Gold first closed above $1300 on September 29th 2010, 67 months ago; and as investors' faith in Central Banks falters - with The Dow down over 400 points (and Nikkei 225 down 1700 points!) from the scene of Kuroda's Kamikaze decision, gold has soared up above $1299...
NKY and JPY are bearing the brunt for now... (the former under 16,000 and the latter with a 106 handle)
Gold is soaring...
And Stocks are plunging...
As it appears Oil algos ran out of shorts to squeeze...