China

Despite another liquidity injection and the rest of the world in 'euphoric risk-on' mode over the French election results, Chinese stock, bond, and commodity markets tumbled overnight...

On Friday, we asked "Is China Trying To (Slowly) Burst Another Stock Market Bubble?" as Chinese monetary conditions were tightening dramatically...

And, as Bloomberg reports, it seems the catalyst is further crackdowns on shadow-banking.

Risk is definitely on this morning as European shares soar, led by French stocks and a new record high in Germany's Dax, after a "French relief rally" in which the first round of the country’s presidential elections prompted investors to bet that establishment candidate Emmanuel Macron will win a runoff vote next month, and who is seen as a 61% to 39% favorite to defeat Le Pen according to the latest just released Opinionway poll.

For those who may have missed yesterday's events, here is a quick recap from DB:

Despite a liquidity injection and the rest of the world in 'risk-on' mode over the French election results, Chinese markets are tumbling...

On Friday, we asked "Is China Trying To (Slowly) Burst Another Stock Market Bubble?" as Chinese monetray conditions were tightening dramatically...

And, as Bloomberg reports, it seems the catalyst is further crackdowns on shadow-banking.

Shortly after the news that later on Sunday, president Trump would hold a phone call with China president Xi and Japan's PM Abe, the White House said in an advance schedule that on April 26 it will hold a briefing for senators with its “four principals” on North Korea "as the administration considers its options for dealing with saber-rattling from Pyongyang" according to Bloomberg. Among those present will be Secretary of State Rex Tillerson, Defense Secretary Jim Mattis, Director of National Intelligence Dan Coats and Joseph Dunford, chairman of the Joint Chiefs of Staff.

A third US citizen has been arrested and remains in custody in North Korea, according to South Korean news agency Yonhap. A man, a Korean-American professor in his 50s, identified by the surname Kim, had been in North Korea for a month to discuss relief activities and was detained at Pyongyang International Airport just as he was leaving North Korea, the agency reported.