Those algos who scrambled to paint yesterday's closing tape with that last second VIX slam sending the S&P back over 2,000, forgot one thing - the same thing that China also ignored - central bankers can not print trade, something we have repeated since 2011.
Following a modest revision to Japanese GDP (still -1.1% and recession-y) and with all eyes glued to China's trade data, Chinese and Japanese stocks are not folowing the panic-buying short-squeeze-driven lead of US equities. Both are down hard in the early AsiaPac trading (with China down for the first time in six days post-G-20).
It's not working Mr Kuroda...
And the markets are starting to realize it...
This is China's first losing day in 6 since the G-20 meeting ended such a dud...(and the world rallied on ECB hope)
By now, the world is largely familiar with Chinese President Xi Jinping’s fabled “Tigers and Flies” campaign.
Since taking office in 2013, Xi has embarked on an ambitious effort to root out party corruption and ensure that the directives passed down from on high in the Politburo are executed faithfully among the sprawling rank and file. As The Atlantic wrote last year, the discipline “problem” is “made more urgent by a slowing economy,” an economy which desperately needs to be reformed.
Submitted by Raul Ilargi Meijer via The Automatic Earth blog,
One week ago we showed the disturbing degree to which the latest (and greatest) housing bubble among China's Tier 1 has gripped the broader public, when we reported that local speculators are waiting in line for days to flip homes.
Visually, it looks as follows - the bubble is entirely in the Tier 1 cities; for now everyone has given up on the other regions which are suffering greatly as a result of the bursting of the commodity bubble and have seen an exodus of recently unemployed workers: