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Tuesday, June 25

25th Jun - EU Open

Previously on MoreLiver’s:

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News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT
Asia Morning MoneyBeat: Global Selloff Drags U.S. Stocks Lower – WSJ
Europe Morning MoneyBeat: China Crunch Worries Weigh Again – WSJ

3 Numbers to Watch: US Durable Goods, New Home Sales, Cons. Conf.TradingFloor
The day will be US-centric, with the week's most important durable goods and housing data expected to confirm that the economy is slowly but surely growing.

Market Preview: Heavy US economic calendar aheadTradingFloor
European markets are likely to open mostly lower Tuesday. Traders await today's raft of US macro releases including consumer confidence which is expected to deteriorate for June. Also, US durable goods orders and new home sales data will be in focus.

Danske DailyDanske Bank (pdf)
Most important release today is US durable goods orders. We expect a relatively weak report. Plenty of
ECB speeches today. Most important is Draghi’s speech on ‘A strong Europe – A Bright Future for Germany’.

Aamukatsaus Nordea
Kiina kiristää rahapolitiikkaa vaikka talouskasvu hidastuu * Öljyn hinta korjasi hieman maanantaina


Quis custodiet ipsos custodes?MacroScope / Reuters
Who guards the guards? In the case of Europe’s banks, the answer is still a work in progress given the faltering efforts to create a banking union.

Collapsing European Imports Crush Current Account Recovery CravingsZH
JPMorgan's Michael Cembalest: The current account deficits in Spain, Italy, Portugal and Greece have now closed. In prior crises, this development usually meant a broadening recovery was on the way.

Italy could need EU rescue within six months, warns MediobancaThe Telegraph
Italy is likely to need an EU rescue within six months as the country slides into deeper economic crisis and a credit crunch spreads to large companies, a top Italian bank has warned privately.

Good explanation for tight interbank liquidity conditions in ChinaSober Look
Someone sent us a quote from JPMorgan that finally explains the origins of the tight interbank liquidity conditions in China. It's roughly what analysts have been suggesting.

Hopes and false hopes in China’s interest-rate
Shang-Jin Wei: The Chinese central bank has recently dropped hints that it will quicken the pace of interest-rate reforms, moving towards a more market-determined regime. Will this reduce China’s ‘excessive’ savings and current-account surplus? This column argues that it won’t. While the interest-rate reform may carry many benefits, reducing the country’s current-account surplus is not one of them.

Asia Crumbling; China's Worst 2 Days In Almost 4 Years, Nikkei 450 Pts Off ZH

China Crash Continues; Shanghai Composite Enters Bear Market; PBOC Rumors EmergeZH

PBOC Speaks, Says Liquidity "Ample"ZH

A Bond Convexity PrimerCFA Institute
As the US Federal Reserve lays the verbal groundwork for an eventual real-world quantitative easing taper, bond prices are dropping at an accelerated rate. In order to understand the ramifications of a Federal Reserve taper on the prices of a bond or bond portfolio, what is needed is a bond convexity primer.