United Kingdom

Now that China's brief infatuation with "rationalizing" excess capacity in its massively glutted (and insolvent) steel sector is over after lasting all of 2-3 months, China is back to doing what it did in late 2015 (and what it has always done) when as we reported, a surge in Chinese exports led to the first salvos in the trade war between China - the world's biggest exporter of various steel products and is responsible for half the entire world's steel output - and countries who are importing dumped Chinese products at the expense of their own steel and mining industries.

After yesterday's algo-driven mad dash to close the S&P green both for the day and for the year following Fed minutes that came in shocking hawkish, the selling has continued overnight, led by the commodity complex as rate hike fears have pushed oil back down some 2% from yesterday's 7 month highs, which in turn has dragged global stocks lower to a six-week low, while pushing bond yields higher across developed nations as the market suddenly reprices the probability of a June/July rate hike.

David Cameron claims that Russian President Vladimir Putin and Abu Bakr al-Baghdadi, the self-proclaimed leader of ISIS would both be happy if Britain were to leave the European Union.. The British prime minister made his comments to reporters on Tuesday following a speech at Mansion House organized by the World Economic Forum, which was aimed at bolstering arguments for remaining in the EU. Cameron’s claim comes a week after suggesting that a Brexit vote on June 23 could lead to World War Three breaking out in Europe.

Last week, David Cameron warned that “Brexit” might lead to war in Europe. This was a ridiculous claim and widely panned as such, but that hasn’t stopped Cameron from resorting to increasingly stupid fear-mongering to sway the public to the side of Remain:

David Cameron has said the leader of Islamic State would be happy if the UK voted for Brexit.

So, according to the Prime Minister, would Vladimir Putin.

It has been more of the same overnight, as global stocks piggybacked on the strong US close and rose despite the lack of good (or bad) macro news, propelled higher by the two usual suspects: a higher USDJPY and a even higher oil, if mostly early on in the trading session.

Yes, the oil squeeze higher continues, and as the charts below courtesy of Andy Critchlow show, Brent is now 82% higher in the past 82 days...

... while crude has had its strongest rally since 2010.