Before getting into the overnight session and mkt news just a heads up I'll be taking a two day Staycation so the BULLETin will be back on Friday!
The lack of news overnight was enough to allow a 'buy all the things' narrative to continue with Treasury's QRA (Quarterly Refunding) suggested lower supply expectations.
US Bonds were bid, Gold railled back to the highs after the QRA as the USD declined.
Bitcoin ripped higher, topping USD$43,000 back at two-week highs...
As GBTC outflows are trending lower and Friday saw net inflows...
Source: Bloomberg
And of course, US stocks drifted higher all day - as they do - but then jumped notably higher on the QRA supply report...
Of course, with everything else rallying, there had to be something to sell... and it was crude oil (because, yeah, the middle-east is much calmer overnigh)...
And all this happened while Chinese Property Giant Evergrande was ordered by a Hong Kong Court to Liquidate after they failed to reach a deal with their creditors.
The liquidation order comes more than two years after the company’s official default, which triggered a cash crunch for Chinese developers that has crippled what was once the world's largest asset class, and is still hobbling the world’s second-largest economy.
The historic decision to liquidate a Chinese property giant will test the reach of Hong Kong courts in the Chinese mainland, where foreign claims are widely seen to hold little sway and the property slowdown has become one of Beijing’s biggest political challenges.While Evergrande is listed in Hong Kong, almost all of its assets and the vast majority of its more than USD$300bn in liabilities are in China. Authorities have so far prioritised the completion of unfinished projects by developers.
Back to the mkts, the Nasdaq melted up even more overnight, but the rest of the week has plenty of big hurdles...
Source: Bloomberg
Will the Dotcom bubble analog hold for a dip to be bought?
Happy Tuesday!
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Andy is the founder of ANDIKA Pty Ltd, a licensed securities & derivatives dealer. He's the author of fiction and non-fiction books and has been a University lecturer on risk and investment.
