Europe

The market's volatile swing are clearly too much for the central banker-incubating hedge fund known as Goldman Sachs, because just three days after Goldman said there has "never been a better time to buy S&P calls", when it said that "our GS-EQMOVE model estimates there is a 21% probability of a 5% up-move over the next month based on the current levels of S&P 500 Free Cash Flow yield, Return on Equity, ISM new orders and US Capacity Utilization"...

... moments ago the same Goldman announced that:

Obama’s Atlantic interviews on foreign policy contains some interesting remarks, but they are difficult to square with Obama’s own policies. The New York Times summarizes some of his views this way:

President Obama believes that Saudi Arabia, one of America’s most important allies in the Middle East, needs to learn how to “share” the region with its archenemy, Iran, and that both countries are guilty of fueling proxy wars in Syria, Iraq and Yemen.

Leaked ISIS documents with the names of 22,000 militants from 51 countries including the UK, Europe, the US, Canada, North Africa and Middle East have been passed to UK security services. The files, stored on a memory stick were reportedly obtained by Sky News  via a defector who stole them from the head of Islamic State’s internal security police.

Ever since the start of ECB's QE, one of the biggest concerns has been how will the ECB continue monetizing €60 billion in debt in a market that is increasingly illiquid and running out of collateral. Moments ago we got the answer when the ECB not only went even deeper into negative rates territory, cutting all three of its main rates, but boosted QE by €20BN.

The spread between the 30Y US Treasury yield and 2Y has plunged by 7.5bps this morning (as 2Y sells off and 30Y rallies post-Draghi) to 175bps. This is the flattest curve since Dec 2008 lows (at 172bps) which can only bode poorly for financials...

30Y bonds are bid (juicy yield compared to Europe) and 2Y yields are surging (room for a Fed rate hike)...

Still buying the Dimon Bottom?

Charts: Bloomberg