In the latest diplomatic escalation between the EU and Turkey, on Thursday the European Parliament voted to suspend Turkey's EU accession talks, which as a reminder have been dragging on for decades, if Ankara proceeds with its tplanned constitutional reform which grants sweeping powers to President Recep Erdogan.
"Believe it or not, one day this will all change," warns former FX trader Richard Breslow in a shockingly frank statement of fact that most (if not all) of the current crew of market-participants are unwilling to accept all the time "the music is still playing."
Via Bloomberg,
Volatility will return, bond yields will find somewhere new to probe. Who knows, even equities might go down.
S&P futures are sliding this morning, down 0.4% and tracking the accelerating decline in European and Asian stocks, driven by a move higher in global interest rates, which started with Japanese 10Y yields rising to 0.1% for the first time since February, but mostly Bund yields which spiked after tripping stops, and jumped as high as 0.53% for the first time since early 2016. Oil climbs, dollar and gold slide. Economic data include initial jobless claims, trade balance, Markit PMI readings.
After Germany’s police discovered a trove of weapons while evicting protesters who had gathered in public parks in Hamburg in anticipation of this weekend’s G-20 summit, Der Spiegel reports that the country’s defense ministry has asked soldiers who are on duty this weekend not to wear their uniforms…for their own safety.
"Everything in moderation" appears to be a phrase the Europeans are willing to ignore. A new report shows the average European puts away between one and four drinks a day, enough to notably increase the risk of colorectal and esophageal cancers. Americans drink 20 percent less alcohol each year than Europeans.