Several days ago, we explained how China's bizarro M&A scramble was nothing more than a rushed attempt to park as much capital in the US (and offshore) as possible before Beijing gets wise enough and cracks down on this latest loophole to evade Chinese capital controls, we had this to say about the farcical, and now pulled, $14 billion Anbang offer for Starwood, owner of the W Hotels, Sheraton and St Regis brands:
Having bounced miraculously off the early January lows - despite no significant fundamental shift - scrambling all the weay up to its 200-day moving-average, copper prices have been tumbling for the last 7 days, the longest losing streak since early Jan. "Worries over Chinese demand is still weighing on the market," warns one analyst and rightly so as, just like the oil complex, copper inventories (in China) just hit a record high.
Miracle ramp...
Is fading now as stockpiles soar...
Roughly around the time the market troughed in early February, we asked "After The European Bank Bloodbath, Is Canada Next?" The reason for this question was simple: we said that "when compared to US banks' (artificially low) reserves for oil and gas exposure, Canadian banks are...not."
Stated otherwise, we warned that the biggest threat facing Canada's banking sector is how woefully underreserved it is to future oil and gas loan losses.
He does it again pic.twitter.com/VxemrcowNf
— zerohedge (@zerohedge) March 31, 2016
The market ended red today...
But The Dow and The S&P ended Q1 in the green after a yuuge drop...
In fact this was the greatest comeback in the history of stocks... (Q1 2016's 11.3% drawdown is the biggest on record for a quarter that ended green)
Back on December 31, the day which was the first quarter and year-end after the Fed's first rate hike cycle in nearly a decade, we pointed out something unexpected - the Fed's rate hike corridor had just been broken when the Fed Funds rate traded as low as 0.12%, far below the mandated minimum of 0.25%.