FX, equity, and bond markets are in turmoil as Asian markets begin trading with Japan ugly, Sterling getting spanked, China devaluing FX (stocks down hard), and crude ($48 handle) and US equity futures (Dow -70) extending losses (as bond markets are all tumbling to record low yields). The hangover from further brexit concerns is not helped by the weakness in Japanese and Chinese data tonight.
First Japanese manufacturing data was a disaster…
Then Chinese data largely disappointed. A "meet" in Industrial Production – hovering at multi-year lows…
*CHINA MAY INDUSTRIAL OUTPUT RISES 6.0% FROM YEAR EARLIER
Retail Sales missed…*CHINA MAY RETAIL SALES RISE 10.0% FROM YEAR EARLIER (lowest since 2006)
And FAI missed… *CHINA JAN.-MAY FIXED-ASSET INVESTMENT EXC. RURAL RISES 9.6% (lowest since 2000)
And if the anxiety over global growth and Brexit were not enough, this China data has sparked even more turmoil in markets as Asia gets going…
First, Japan…
- *JAPAN'S TOPIX INDEX EXTENDS DROP TO 3%; NIKKEI 225 FALLS 3%
Japanese stocks shorts biggest since 2008…
And Japanese 10Y Yields record lows (along with 20Y and 5Y)…
But it's not just Japan, Germany, and Switzerland…
- TAIWAN 10-YR GOVT BOND HITS RECORD LOW OF 0.76%
In China, as we could have guessed by Bitcoin's surge, the Yuan is tumbling…
PBOC devalues the Yuan fix by over 2 handles – back near 5 year lows…
As the Yuan basket plunged to lowest since Nov 2014
Chinese stocks are down most in 6 weeks:
- *HANG SENG INDEX FALLS 2%
- *CHINA'S SHANGHAI COMPOSITE INDEX FALLS 1.3% TO 2,889.91 AT OPEN
And anything Brexit-related…
Cable at 2mo lows…
Sterling shorts biggest in 3 years…
and GBPJPY is a bloodbath… Pound plunging to lowest since Aug 2013…
And finally, gold is holidng its recent gains…
Which must be very upsetting for The BIS. Given this much turmoiling, one can only imagine the central bank efforts to make sure Monday opens green on the NYSE.
Charts: Bloomberg
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