Baltic Dry Index. 1216 +78 Brent Crude 42.68
Spot Gold 1917 US 2 Year Yield 4.77 +0.09
Common sense is very uncommon.
Horace Greeley.
The stock casinos latest high risk bubble came under intense attack from the massed ranks of central banksters yesterday, a fight according to the central banksters, likely to go on all summer.
With money now leaving the stock casinos for the safety of higher yielding government bonds and a new global recession looming, the stock casinos are cruising towards a new 2008 comeuppance.
Although I think yesterday’s central bank actions is probably the top of this round of interest rate hikes for the G-7 central banks, that’s only because what unfolds next is a global recession and a bloodbath in commercial and residential real estate.
Not to worry though, we have team Biden, Trudeau, Sunak, Macron, and Scholtz on the case, what could possibly go wrong?
Asia markets fall
across the board; Japan inflation eases but stays above BOJ target
UPDATED THU, JUN 22 2023 10:48 PM
EDT
Asia-Pacific markets were all lower Friday as
investors look to inflation data out of Japan and Singapore, as well as flash
estimates from the au Jibun bank on Japan’s manufacturing and services
activity.
In Japan, the Nikkei 225 tumbled
1.63%, while the Topix also fell 1.5%. Japan’s core inflation rate in May eased
slightly to 3.2% year-on-year, lower than April’s 3.4% but still above the
BOJ’s 2% target. The May core inflation rate was slightly above the 3.1%
expected by economists polled by Reuters.
South Korea’s Kospi fell 0.71%,
with the Kosdaq also seeing a loss of 0.12%.
Australia’s S&P/ASX 200 was
1.03% lower, after two straight days of losses and following its largest
one-day fall in June on Thursday.
Separately, Hong Kong’s Hang Seng index slid
1.68% on its open as it comes back from a public holiday, dragged by
health-care and tech stocks. Mainland Chinese markets are closed for a public
holiday Friday.
Overnight in the U.S., both the Nasdaq Composite and the S&P 500 snapped a three-day losing streak and
finished higher, with the Nasdaq up by 0.95% and the S&P 0.37% higher. In
contrast, the Dow Jones Industrial Average fell slightly, extending its losing streak
to four days.
Asia markets fall
across the board; Japan inflation eases but stays above BOJ target (cnbc.com)
Stock futures are flat on Thursday evening as
Wall Street heads for losing week: Live updates
UPDATED THU, JUN 22 2023 7:02 PM
EDT
Stock
futures were little changed in overnight trading Thursday as Wall Street headed
for a losing week.
Futures tied to
the S&P 500 inched
up by 0.05%, while Nasdaq-100 futures
gained about 0.1%. Futures connected to the Dow Jones
Industrial Average rose
29 points, or 0.08%.
Investors bought
up technology stocks during
Thursday’s session after a three-day breather from the market
rally, pushing the tech-heavy Nasdaq Composite up
0.95% and shares of Apple to
a new all-time high. The S&P 500 added
0.37%, while the Dow Jones
Industrial Average lost
4.81 points, pressured by shares of Boeing.
All three major
averages are set to break multi-week win streaks. The Dow and S&P 500 have
lost 1% and 0.6%, respectively, since the start of the week. The Nasdaq is down
0.4%, on pace to snap an eight-week win streak and post its worst weekly
stretch since April.
“The markets
have been under a bit of pressure since the press conference and news release
of the Fed the other week stating that they are not going to increase interest
rates at this time, but are likely to increase rates again 1-2 times later this
year,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
These
developments have given the market a “breather” as investors “come to terms”
with the ongoing outlook for the central bank’s hiking campaign, he added.
---- Nasdaq on pace for its worst
week since April
Thursday’s tech
turnaround – propelled by the likes of Amazon – came too late to avert the
Nasdaq Composite’s decline on the week. The tech-heavy index is now on pace for
its worst week since April.
The Nasdaq
Composite is down 0.4% for the week through Thursday’s close – a slip that will
snap its run of eight positive weeks. The S&P 500 and the Dow Jones
Industrial Average are also down for the week, off 0.6% and 1%, respectively.
Those declines would end a 5-week win streak for the S&P 500 and a 3-week
run of gains for the Dow.
In the grand scheme of things, the three indexes are still enjoying a strong June. The Nasdaq is up 5.4% for the month, while the S&P 500 has gained 4.8%. The Dow is up more than 3% for the month.
Stock
market today: Live updates (cnbc.com)
Bank of England surprises with 50-basis-point
rate hike to tackle persistent inflation
PUBLISHED THU, JUN 22 2023 7:04 AM EDT
LONDON — The Bank of
England on Thursday surprised markets with a 50 basis point hike to
interest rates, its 13th consecutive increase as policymakers grapple with
persistently high inflation.
The Monetary Policy Committee voted 7-2 in favor of the half-percentage-point
increase, which takes the Bank’s base rate to 5%. The move defied market
expectations, which had priced in around a 60% chance of a 25 basis point hike.
Fresh data on Wednesday showed annual
U.K. consumer price inflation was 8.7% in May, unchanged from the previous
month, cementing market expectations that the MPC would opt for another hike.
Economists also upped their expectations for further monetary tightening in the
future.
Most worryingly for the central bank, core inflation — which excludes
volatile energy, food, alcohol and tobacco prices — was 7.1% year-on-year in
May, up from 6.8% in April and marking its highest rate since March 1992.
Policymakers are walking
a tightrope as they attempt to tighten monetary policy sufficiently to
quell inflationary pressures without triggering a full-scale mortgage crisis
and recession.
Bank of England
June decision: 50-basis-point rate hike to tackle persistent inflation
(cnbc.com)
Swiss central bank
raises rates again, signals may need to do more
June 22, 2023
ZURICH
(Reuters) -The Swiss National Bank raised its policy interest rate by 25 basis
points on Thursday as the central bank pressed ahead with its campaign to
dampen stubborn inflation and left the door open for more tightening.
The increase,
in line with forecasts in a Reuters poll, meant Swiss interest rates were now
at their highest level since April 2002.
Chairman
Thomas Jordan pointed to rising inflationary pressures and the danger of price
increases becoming entrenched.
Although
inflation has declined compared with a year earlier, there was still more work
to be done, Jordan told reporters.
"The
marked decline in recent months is very welcome," Jordan said. "This
is also the result of our monetary policy which is now significantly more
restrictive than one year ago.
"Nevertheless
the underlying inflationary pressure has risen further," He added.
"We are therefore observing persisting second-round effects in many
domestic goods and services."
As a result,
Jordan said he could not rule out further increases.
On Thursday the SNB increased its policy rate and the rate it
charges on sight deposits to 1.75% from the 1.5% level set in March.
The increase,
in line with forecasts in a Reuters poll, meant Swiss interest rates were now
at their highest level since April 2002.
Jordan
acknowledged that higher interest rates were leading to higher rents, with the
knock-on effect of adding to inflation.
Still, he said
this would not deter the SNB from hiking again.
More
Swiss central bank
raises rates again, signals may need to do more (msn.com)
Norway central bank
raises rate to 15-year high, with more to come
June 22, 2023
OSLO (Reuters)
- Norway's central bank raised its key policy rate by 50 basis points (bps) to
3.75% on Thursday in a bid to curb inflation, more than expected by a majority
of economists surveyed by Reuters, and said it aimed for another hike in
August.
Of the 32
economists polled in advance, 24 had anticipated an increase of 25 bps on
Thursday while eight had bet on an increase of 50 bps.
The central
bank predicted the policy rate would rise to 4.25% during the autumn.
"If we do
not raise the policy rate, prices and wages could continue to rise rapidly and
inflation become entrenched," Norges Bank Governor Ida Wolden Bache said
in a statement.
The Norwegian
currency, the crown, strengthened to 11.55 against the euro at 0807 GMT from
11.69 just before the announcement.
In May, Norges
Bank said it would "most likely" hike again in June, and official
data has since shown higher-than-expected growth in consumer prices and a
brighter outlook for many Norwegian companies.
"Today's
hawkish decision shows that Norges Bank means business and is concerned about
inflation becoming entrenched," analysts at Nordea said in a note to
clients.
"The
decision is justified given that inflation has come in markedly higher than
anticipated," Nordea added.
The hike
raises the policy rate to its highest level since the outbreak of the global
financial crisis of 2008.
More
Norway central
bank raises rate to 15-year high, with more to come (msn.com)
Turkey’s central
bank hikes interest rate to 15% in dramatic U-turn to tackle 40% inflation
PUBLISHED THU, JUN 22 2023 7:17
AM EDT
Turkey’s central bank
jacked up the country’s key interest rate Thursday, almost doubling it from
8.5% to 15% as the new economic administration of recently re-elected President
Recep Tayyip Erdogan embarked on a dramatic monetary policy U-turn.
The bank said that
there will be further gradual monetary tightening until the inflation picture
in the country improves.
The whopping
650-basis-point rate rise is the country’s first since March 2021, but was
below analyst expectations of a 1,150-basis-point hike to 20%.
“The Committee decided to begin the monetary
tightening process in order to establish the disinflation course as soon as
possible, to anchor inflation expectations, and to control the deterioration in
pricing behavior,” the central bank, led by newly-appointed Governor Hafize
Gaye Erkan, said in a statement.
Some analysts criticized the central bank’s move
as not going far enough, however.
“Ouch — disappointing. Not enough,” Timothy Ash,
emerging markets strategist at BlueBay Asset Management, wrote in an note via
email. “They needed to front load hikes. Market won’t like that.”
The lira weakened to around 24.1 against the dollar following
the news, from 23.54 before the decision was announced — a record low,
according to Reuters data.
More
Turkey’s
central bank hikes interest rate to 15% in dramatic U-turn to fight inflation
(cnbc.com)
In
other news, was this week a good week to bury bad Biden news?
Distraction? Questions
Swirl Over Timing Of Sub Story As Biden Bombshells Hit Target
FRIDAY, JUN 23, 2023 - 02:20 AM
As two IRS whistleblowers prepared to go
public with more
damning information implicating the Biden administration in a scheme to bury
evidence of Hunter Biden's tax crimes - as well as the revelation
that Joe Biden was 'in the room' when Hunter shot a threatening message to a
Chinese business associate demanding payment, a story which some have
called "the biggest
political scandal this country has ever seen", another story
captivated the nation: the deaths of missing submarine passengers who set off
last weekend to see the Titanic, only to lose contact shortly into the trip.
Late Thursday the Wall Street
Journal reported that
"A top secret military acoustic detection system designed to spot enemy
submarines first heard what the
U.S. Navy suspected was the Titan submersible implosion hours after the
submersible began its voyage," and that "the U.S. system
detected what it suspected was the sound of an implosion near the debris site
discovered Thursday."
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