***Major shift looks to be taking place as investors sold yesterdays risk rally heavily. Volatility on the rise. Only gainers are Dollar, Yen and gov. bonds as people dump risk. Fed looking for a reason to taper but unlikely until December meeting. In case data disappoints, QE could be extended further at the same amount. Stimulus could lead to asset bubbles in global markets. According to Ex Fed economist Bill Lee. ECB will be monitoring 124 major banks soon in a new supervisory role. Troika officials will return to Greece in November to further assess progress. Australian government to provide RBA with 8.8B AUD to boost its finances. Weak NFP data created extreme volatility that is continuing till this second. Major risk rally took place yesterday after disappointing NFP data. Dollar took a hit while equities pushed higher on prospect of no tapering. Eventually sentiment turned bearish with Dollar and Yen bid across the board while equities reversed lower. Currencies traded lower overnight with Cable dipping towards the mid 1.6100s while Yen crosses took a hit and showed losses of over 1% across the board. Commodities initially traded higher but the rally faltered with metals failing to hold momentum and Crude Oil trading below 98.00. Equities initially posted new highs but quickly reversed. More downside is possible as weakness sets in. Asian equities ended lower with Nikkei closing 1.95% lower and Shanghai composite down 1.25%. Euro zone equities suffering losses this morning with Spanish and Italian index down over 1% in morning trading.
Posted on: Wed, 23 Oct 2013 08:02:26 +0000
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