Now that no-one (FED, ECB, SPX, EURUSD, etc.) is leading the way, global markets are taking their cue from the Nikkei. Funny.
Previously on MoreLiver’s:
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap – Global
Macro Trading
The Closer – alphaville / FT
Europe: Stocks Dive Most In 10 Months – ZH
US: "Dead Cat Bounce" Or "Pause That Refreshes" – ZH
EUROPE
We have finally made
up our minds about Q1 GDP – 0.7% y/y is the figure we expect. If correct,
pressure on the Riksbank will increase further
Europe’s
Lost Keynesians – Project
Syndicate
Kenneth Rogoff: There
is no magic Keynesian bullet for the eurozone’s woes, despite what many
commentators and much of the public seem to believe. The eurozone’s
difficulties stem from European financial and monetary integration having
gotten too far ahead of actual political, fiscal, and banking union – not
exactly a problem that Keynes tried to address.
.
CHF: Floored but no one’s counting – Nordea
(pdf)
We forecast EURCHF at
1.25 by year-end and at mid-2014, and 1.30 at end-2014. Recent CHF weakness
reflects the general risk-on environment while also speculations about
additional easing measures being imposed by the SNB
ECB
The ECB Should Act to Avert the Risk of
Deflation in the Euro Area – PIIE
When price stability
is assured, there is no need to change policy. When price stability is at risk,
policy should be changed to fulfill the mandate.
The Two Charts That Keep Draghi Up At Night – ZH
From BNP:
non-performing loans, interest rates on loans to corporations
Vítor Constâncio: The European crisis and the
role of the financial system –
ECB
Benoît Cœuré: The Single Resolution Mechanism:
Why it is needed – ECB
UNITED STATES
Fed’s Williams: Bond Purchases Could Move Up
Even After Tapering Starts – WSJ
ASIA
Yikes! The Japanese stock market cratered
overnight – Wonkblog
/ WP
Why Japan? Because That’s Where the Profits
Were – WSJ
The problem is not
that such markets are overvalued per se; it’s that they become the go-to place
to take profits when investors get jittery.
Everyone’s scared of something – alphaville
/ FT
Nomura’s Richard Koo
put out a note on Tuesday reacting to the rise in JGB yields since the Bank of
Japan went into QE overdrive that seems worthy of some attention.
Abenomics gets the Alphachat podcast treatment – alphaville
/ FT
A chat with Citi FX
strategist Steven Englander to discuss all things Abenomics — the risks and the
possible rewards and why Steven is bearish
Japanese Corporates Not Yen Bears (Any More) – Marc
to Market
Japanese Bond Rout Continues – Mish’s
BoJ vows to curb bond turbulence,
curbing turbulence is theoretically easy
Elementary, My Dear Watanabe-san – Krugman
/ NYT
So to the extent that
this wasn’t just markets doing their occasional panic thing, it looks like a
sudden outbreak of concern about whether the Bank of Japan has really changed
as much as it seems.
By committing to be
“credibly irresponsible” the central bank can actually contribute to the boom
which then creates the imbalance that results in the bust.
SocGen: "Hedge Funds Have Already Started
To Unload Nikkei" – ZH
Richard Koo Warns Of "Beginning Of The
End" For Japanese Economy
– ZH
OTHER
‘Fed Won’t Stand in the Way of Growth’ and
Other Thoughts – WSJ
Here are a few
reactions from analysts and economists:
Misreading the Global Economy – Project
Syndicate
Over the last three
years, the IMF's economic forecasts have repeatedly proved to be overly
optimistic. The problem is rooted in a misdiagnosis of the global economy's
problems, including the impact of the eurozone crisis and slowing GDP growth in
emerging economies.
The Rules, Part XXXVIII – The Aleph
Blog
What errors do most
money managers make today?
EMEA Weekly, Week 22 – Danske
Bank (pdf)
Chinese weakness and
monetary policy uncertainty triggers sell-off – Danske
Bank (pdf)
The end of risk rally? Probably not
OFF-TOPIC
31 Charts That Will
Restore Your Faith In Humanity – BI