After a few short days of respite - suggested by some as indicative that the worst is over - China commodities are crashing again tonight with Dalian Iron ore snapping below 460 to its lowest since before Trump's election...
This has erased the entire post-Trump reflation trade hope...
By EconMatters
I was debating whether to put this post on our sister site Asia Pop Culture, but decided EconMatters.com seems a more appropriate place.
Authored by Nourial Roubini via MarketWatch.com,
With Emmanuel Macron’s defeat of the right-wing populist Marine Le Pen in the French presidential election, the European Union and the euro have dodged a bullet. But geopolitical risks are continuing to proliferate.
"Iron ore doesn't have good fundamentals," warns one analyst as while the crackdown on leverage in Chinese capital markets (which has tightened liquidity everywhere) is the immediate catalyst, "supply-side pressure is huge as ever, and mills are still seeking to draw down inventories."
Authored by Pepe Escobar via The Asia Times,
So in the end the West was saved by the election of Emmanuel Macron as President of France: relief in Brussels, a buoyant eurozone, rallies in Asian markets.
That was always a no-brainer. After all, Macron was endorsed by the EU, Goddess of the Market, and Barack Obama. And he was fully backed by the French ruling class.
This was a referendum on the EU – and the EU, in its current set-up, won.