Currency futures options ppt
By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. John Maynard Keynes, The Economic Consequences of the Peace The crash happened just two weeks after we warned that as a result of the PBOC's imprudent recent tightening of financial conditions, the central bank was practically begging for a bond market crash, one which Janet Yellen was happy to catalyze with the Fed's rate hike and hawkish language.
As the chart below shows, a crash is precisely what China got. The crash, however, was just the start of China's woes, because what happened next could spell far more headaches for a market that is now in a "bursting bubble" mode.
As the WSJ reported this morning, Chinese authorities halted trading in key bond futures for the first time on Thursday, " as panicky investors sold the securities on concern that a long, credit-fueled bull market was coming to an end amid slowing growth, capital outflows and heightened government concern about asset bubbles.
The furious selloff, captured in the chart above, began in late November and has accelerated this week on concerns of capital outflows, a hawkish Fed and rising inflationary pressures. As is widely known by now, China years of abundant, cheap credit have lead to a series of price bubbles in various asset classes from housing, to stocks, to commodities, to cars, to chickens, and now bonds.
As we reported as the time, the yield on year government bonds had reached a record low of 2. In an amusing comment shared by the WSJ, Hao Hong, co-head of research at Bocom International said that "People woke up to the fact that the bond bubble is too large. The bond market in China is under severe pressure, across the board.
As was to be expected, and as this website warned in November, the Fed's decision to raise interest rates helped trigger the selloff. However, unlike other EMs, China has its own unique set of problems to deal with.
China's Not So Stealth Tightening " tightened short-term lending in recent weeks in an effort to make it harder for speculative investors to borrow money. The problem is that such tightening moves—along with any future rate rises—could provoke market plunges and panics as liquidity dries up.
Analysts said such rumors carried weight because many fund managers are heavily in debt, making them vulnerable to declining bond prices.
Which is not good, because it means last night's crash is just the start and will add to broader concerns about the Chinese economy, which grew at its slowest pace in more than 25 years inweighed down by a growing debt load and money-losing state-owned industries. Adding to China's mysery is that the country has been grappling with large-scale capital outflows. To stem the outflows, authorities are using measures such as restricting overseas company acquisitions—transactions that could be fronts for spiriting money out of the country.
Currency Futures - Ppt | Futures Contract | Hedge (Finance)
But the worst news is that in an economy driven entirely by cheap, abundant credit, at least until now, the consequences of the bursting of the bond bubble will only emerge stock market fannie mae the coming stockbroker intern london as China's economy, all of which is vastly reliant and lubricated by said cheap creditslows down dramatically, and which in turn will currency futures options ppt to both the global economy and capital markets.
The only question is when. Seems to me that if you indicated that higher dollar might corrapse the Chinese economy, not sure Trump would have any issue with that China's economy is dependent on abundant cheap credit to fuel asset bubbles of all kinds.
So says the WSJ. Maybe true, but earn cash fast melbourne don't binary futures options get this kind of sober assessment of our own economy?
How exactly is it different from China's? Well I guess we have a trade deficit and they have a trade surplus, that must explain why we're so much better off financially At least they are told to shut up and produce. We, on the other hand, are simply manipulated forex trading optionsxpress more spending.
S has to keep China off balance economically. China is in a vulnerable position and the yuan eventually hits 9 vs. There cannot possibly be a bid and bond market while the Fed is raising rates, and taking their time about it. Higher rates by definition mean lower bond market prices. And when our bond market goes down, arbitrage takes them all down.
The Fed is saying they are going to crunch the bond market. So just get binary options nfp of the way. All that money that would have gone stock market brain teasers bonds, how much do stockbrokers make in toronto now go elsewhere.
BLK STT are insolvent and taking government retirement with them. I've pointed out on more than one occassion that the consortium of bankers that rule the planet are artists at creating dependency then pulling the rug out and using it to wrap the unwitting victum up in it cut a hole and go to town.
Raising rates creates an enormous gravitational force towards US Bonds and destroys all other ponzi's in its path. PBOC the last bastion of market credibility is losing control. You still need to test that the economy, particularly its financial economy, are still having robust structures that will not amplify the volatility.
Here's our Cookie Policy. How to report offensive comments. Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. CNN's Jim Acosta Throws Dramatic Tantrum Over Sean Spicer's Silent Press Briefing by ZeroPointNow - Jun 19, Inflation is no longer in stealth mode by GoldCore - Jun 20, 5: Dec 15, China Janet Yellen High Yield How to make money as a club promoter Markets Bond Global Economy Shenzhen Market Crash.
Printer-friendly version Dec 15, Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded. Date - newest first Date - oldest first.
FIM - Currency Futures PPT
Select your preferred way to display the comments and click "Save settings" to activate your changes. NoWayJose Dec 15, How soon until the Fed starts walking back its 'hawk' message? NEOSERF NoWayJose Dec 15, Dragon HAwk Dec 15, No Selling permitted, now get back to trading like we told you. NugginFuts Dragon HAwk Dec 15, How is that much different from here? Only main difference is our PPT is largely hidden. ZoroAustrian NugginFuts Dec 15, Monopolist ZoroAustrian Dec 15, DarkPurpleHaze Dec 15, Who didn't see this coming?
Kina Dec 15, STG5IVE Dec 15, Quinvarius Dec 15, Ghost of Porky Dec 15, SirBarksAlot Dec 15, Hero to zero in nothing flat. Debt is wonderful when you use it, awful when it comes due. One ring to rule them all and in the darkness bind them. When Central Banks want to Taper bond buying, Crash their markets and ride the flight to quality cliche. Gnostech Dec 15, Everyone should have expected it. Vlad the Inhaler Dec 15, 1: TimmyM Dec 15, 2: Create new account Request new password.
To prevent automated spam submissions leave this field empty. Zero Hedge Reads Acting Man Alt-Market Benzinga Boom Bust Blog Capitalist Exploits China Financial Markets Chris Martenson's Blog Contrary Investor Daneric's Elliott Waves Dr. New Comments 6: We really are in the matrix JethroBodien. The cop who shot Castile was fattail. Its a cab company with an AlexCharting. We should give Washington the Offthebeach. Economics - a disgusting Fahq Yuhaad.
Democrats Get Crushed In Georgia Election Despite 7x Spending Advantage. At Least It Tried". Will It Be Economic Collapse?
We Won't Have To Guess Much Longer How to report offensive comments Notice on Racial Discrimination. RanSquawk News 6: DAILY US OPENING NEWS: The DUP is reported to have threatened to walk ASIA-PAC SERVICE HAS NOW FINISHED, PLEASE REVERT BACK TO YOUR A Downing Street source has confirmed the departure of PM May's UK Public Sector Net Borrowing May 5.
ECB allots EUR 35mln in its 7-day MRO. Epizyme's tazemetostat granted Orphan Drug Designation by FDA Boeing, Mauritania Airlines announce order for one MAX 8. Netflix experiments with interactive shows for kids, The Verge says.
Adobe hits fresh life highs after results. Red Hat sharply higher after earnings, outlook, Nanya sells additional 6M shares of Micron, DigiTimes reports. Theranos, Walgreens reach tenative agreement to settle lawsuit, WSJ Barclays Upgrades Weatherford International WFT to Overweight. Boeing BA AerCap Announce 2 - MAXs to be Leased to Neos. Huntington Bancshares HBAN volatility at low end of range.
Nasdaq Futures Quotes - uqyhadet.web.fc2.com
Citi Downgrades Target TGT to Neutral. Celyad SA CYAD Publishes Report with Additional Pre-clinical Data in Support of THINK trial. Discrimination Notice Cookie Policy.