China stocks plunge amid heavy selling in the energy sector and growing worries about the economy

More than 637 billion shares worth 4.44 trillion yuan ($639.86 billion) were pledged for loans as of Oct. 12, according to Reuters’ calculations based on data from the China Securities Depository and Clearing Co.(CSDC). Chinese stocks have fared worse than other stock markets in Asia this year, particularly in recent weeks as global equities bear the brunt of a simmering ...

Read More »

Here’s what Wall Street isn’t paying attention to from the Fed

Market experts chose to focus on the inflation part. Going above the so-called neutral rate “is contingent [on] keeping inflation from overheating,” wrote Jim Caron, managing director at Morgan Stanley Investment Management. “Only” a few members thought policy would need to become restrictive, noted Paul Ashworth, chief U.S. economist at Capital Economics, who added that most members want to hike ...

Read More »

This is the tightest labor market I’ve ever seen

Former Federal Reserve Chairman Alan Greenspan told CNBC on Thursday the United States currently has the tightest labor market he’s ever seen. Greenspan, 92, suggested the nearly 50-year low unemployment rate coupled with American corporations clamoring for workers will force up wages and inflation. “Ultimately prices take hold,” he said. “This is the tightest market, labor market, I’ve ever seen, ...

Read More »

oftwominds-Charles Hugh Smith: Is the Greatest Bull Market Ever Finally Ending? (Hint: Follow the Money)

The key here is the gains generated by owning US-denominated assets as the USD appreciates. Is the Greatest Bull Market Ever finally ending? One straightforward approach to is to follow the money, i.e. global capital flows: assets that attract positive global capital flows will continue rising if demand for the assets exceeds supply, and assets that are being liquidated as capital flees ...

Read More »

Dollar Libor at a 10-Year High Adds to Global Funding Headwinds (Fed’s Giant Electric Belt!) – Confounded Interest

confoundedinterest17 Banking, Economy, fannie mae, Fed, Freddie Mac, GDP, GSE, Housing, Inflation, LIBOR, Mortgage, Treasuries, Treasury, Uncategorized, Yellen October 17, 2018October 17, 2018 1 Minute (Bloomberg) — The global dollar benchmark rate that everyone loves to hate and which regulators have marked for extinction approached a 10-year high Wednesday, adding to strains on some emerging economies and U.S. companies alike. The London interbank ...

Read More »

Bank of America downgrades homebuilder stocks, lowers housing starts forecasts

Bank of America Merrill Lynch downgraded homebuilder stocks Toll Brothers, PulteGroup and NVR and lowered its homebuilding estimates for 2018 and 2019. “This morning BofA Merrill Lynch’s US economics team lowered its 2018-2019 housing starts and new home sales forecasts and thus we slightly temper our macro housing assumptions,” analyst John Lovallo said in a note Thursday. Lovallo downgraded Toll ...

Read More »

US Stocks Plunge, Italian Risk Spikes As Draghi Threatens Italy

Update: The Dow is down almost 400 points now, accelerating lower and erasing the majority of Monday’s gains following remarks from ECB President Mario Draghi, whining about countries not following EU rules: “Questioning of the rules inside the EU can lead to worsening of the conditions in the financial sector and therefore damage growth… Rules must be respected in the ...

Read More »