One day after Trump slammed Canada with a lumber tariff, somehow managing to send lumber future prices limit down on the CME, he is faced with another, far more credible crisis: the terrible guidance just released by US Steel in particular, and the fate of the US Steel industry - and China's adverse impact - in general.
Here is the bloodbath just reported by US Steel:
China's first domestically built aircraft carrier will soon launch in Dalian, Liaoning Province for drills and trial voyages, putting to the test proprietary technology meant to further Beijing's expansion in the South and East China seas, the SCMP reported. A dock at the Dalian shipyard was being filled with water Sunday in preparation for the launch. The Chinese-made vessel is expected to enter service around 2020, joining China's first and only aircraft carrier, a refurbished Ukrainian vessel known as the Liaoning.
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.