Asia

Authored by Federico Pieraccini via The Stratgeic Culture Foundation,

Caterpillar's great depression ended three months ago, when in March following a record 51 consecutive months of annual declines, its global retail sales posted the first, if modest, monthly increase growing by 1% on the back of a surge in Chinese and other Asia/Pac sales. Since then the trend has accelerated, and in May the company reported that Asia Pac sales soared by 49%, the highest since April 2011, while maybe more notably, retail sales in the US rose by 2%, for the first time since May 2015.

European stocks were flat after starting off strongly earlier, dragged lower by energy stocks. Asian stocks, U.S. futures little changed as oil tumbled with Brent tumbling as low as $45.85/bbl to the lowest intraday since November 30 and taking out a 38.2% Fib support, after a one-minute spike in volume to a day-high 5,208 lots just after 6am, with WTI mirroring Brent's momentum, and falling as much as 98c to $43.22, lowest since November 14.

On Monday morning, we reported that in a stunning development, chronic defaulter Argentina - which just one year ago emerged from its latest bankruptcy - has found enough willing greater fools to sell 100-year bonds to. One person who especially stunned, was Mint's Bill Blain, who issued an entire note describing his disgust with what the market has devolved to.

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Argentina 100 Year Bonds: Really? Nobody Believes, But They Will Buy.

“Everyone should learn to Tango before they die.. ”

In an otherwise relatively quiet week in which the only upcoming US data is housing, current account and jobless claims, UK politics will again draw attention, one year (on Friday) after the Brexit referendum and as noted earlier, Brexit negotiations begin on Monday, despite lingering political uncertainty in the UK. Also no less than 9 FOMC members are scheduled to speak this week.