Business

• China’s Yuan Makes Largest Gain Since 2005 on PBOC Cue (WSJ)
• Japan's Nikkei soars over 7%, for its biggest gain since 2008 (BBG)
• Global shares rise as firmer Chinese yuan eases deflation fears (Reuters)
• Banks' Surge Takes Europe's Stock Rally Into 2nd Day; HSBC Rises (BBG)
• Oil extends rally on prospects OPEC could act to counter low prices (Reuters)
• Europe's Higher-Yielding Bonds Benefit as Global Turmoil Eases (BBG)
• Republicans gear up for Supreme Court battle after Scalia's death (Reuters)

Bad news is once again good news... for stocks that is. 

After a month and a half of markets unable to decide if they should buy or sell on ugly data, over the weekend, People’s Bank of China Governor Zhou Xiaochuan expressed faith in the economy, and said there is no basis for further Yuan devaluation, something the PBOC has said consistently over the past year, despite two sharp devaluation episodes.

In his inimitable manner, Abraham Gulowitz unleashes 18 new pages of "all the charts you can eat" to expose the ugly reality of what is going on everywhere.

Trust Busters...

Excerpted from Doug Noland's Credit Bubble Bulletin,

Credit is not innately good or bad. Simplistically, productive Credit is constructive, while non-productive Credit is inevitably problematic. This crucial distinction tends to be masked throughout the boom period. Worse yet, a prolonged boom in “productive” Credit – surely fueled by some type of underlying monetary disorder - can prove particularly hazardous (to finance and the real economy).

We just cannot wait for the next time either Abe or Kuroda utter the following string of words "[stimulus - insert any combination of equity buying, bond buying, money printing, and NIRP] is having the desired effect." For the sixth time in the last 6 years, GDP growth has once again turned negative and while the BoJ balance sheet continues to balloon, so the nation's economy (as measure by GDP) is now shrinking as Peter Pan policy is officially dead.