Europe

A lot changed over the past 4 days, starting with Draghi's unexpectedly hawkish speech earlier this week (subsequent ECB clarification notwithstanding), followed by a barrage of hawkish Fed speakers - including Yellen - all of whom warned that risk assets are overvalued, then the heads of the BOE and BOC, who also came out surprisingly hawkish and warned rates hikes are coming, and finally the conclusion of the ECB's forum in Sintra, where the hawkishness was palpable. In short: coordinated global central bank tightening, or at least jawboning.

Washington Has Been At War For 16 Years: Why?

Paul Craig Roberts

For sixteen years the US has been at war in the Middle East and North Africa, running up trillions of dollars in expenses, committing untold war crimes, and sending millions of war refugees to burden Europe, while simultaneously claiming that Washington cannot afford its Social Security and Medicare obligations or to fund a national health service like every civilized country has.

Yesterday's 'dead cat bounce' in FANG stocks has been erased as broad-based weakness stemming from increasing recognition of hawkish central bank chatter is hitting stocks and bonds. Bank stocks bounce after stress test 'success' are saving some indices from bigger losses.

FANG stock erased yesterday's gains...

Bank stocks bounced overnight and remain green but are fading as the day progresses...

All major indices are in the red with The Dow holding up better as Nasdaq is hit hard...

• Global Bonds Gyrate as Investors Try to Parse Central Banks’ Next Stimulus Moves (WSJ)
• Republicans struggle to salvage healthcare effort (Reuters)
• States' Medicaid spending to increase (Reuters)
• Apple's iPhone turns 10, bumpy start forgotten (Reuters)
• Fed’s Stress Tests: All Banks Cleared on Payouts to Shareholders (WSJ)
• Bitcoin's Become So Volatile That It Looks Like a Steroidal ETF (BBG)
• They Built the First Phone You Loved. Where in the World Is Nokia Now?  (BBG)

The euro soared to the highest level in over a year while bond yields and global shares also climbed, as an ongoing barrage of coordinated hawkish comments from central banks signaled the era of easy money might be coming to an end for more than just the United States. S&P futures were fractionally in the green following the best day for US equities in two months, as banks climbed after passing the Fed's stress tests and announcing bigger than expected shareholder payouts.