Asia

With Emerging Market bonds suffering sudden and large outflows (after reaching record low levels of risk), IPOs collapsing, and 'no brainer' FANG stocks unable to keep a bid, it appears - despite the hype of a 30-component-index heavily weighted towards financials being near its record highs - that all is not well in the "buy everything.. especially the highest beta crap" investing world in which traders have become so used to existing.

Buy Gold Near $1,200 “As Insurance” - Swiss Bank 

S&P futures were little changed at 2,425, ignoring the N.Korea tensions of the past two days which will likely be a major topic in the upcoming G-20 summit, as European stocks fluctuate and Asian markets advance. Crude oil fell, snapping the longest winning streak this year, as Russia said it opposed any proposal to deepen OPEC-led production cuts.

With the US out on holiday for the 4th of July, overnight trading volumes have been muted, as Europe started off in the red but has since trimmed most losses (Stoxx 600 -0.1%) while S&P500 futures rose shaprly from session lows spurred by the European open ignoring the risk-off sentiment from North Korea's latest missile launch, trading 0.2% higher, or up 4 points to 2,429 and closing the gap to Monday's last minute tech-driven market selloff.

Authored by Soeren Kern via The Gatestone Institute,