Yen Carry-Trades unwinding rapidly, global asset-prices collapse

[k1976]

https://gulfnews.com/business/marke...tensifies-powering-bond-rally-1.1722837203068


"It's a pretty dramatic shift in narrative, which shows how much of the recent trends were backed by expectations of a US soft landing," said Charu Chanana, head of currency strategy at Saxo Bank A/S.

"The more the US soft landing assumption gets questioned, the further pullback we could see in equities and strategies funded with the low-yielding currencies where positioning has been massively skewed."

 

[k1976]

 

[k1976]

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Markets

Apple Investors Urged to Stay Calm After Buffett Slashes Stake​

• Value of Berkshire stake in Apple stands at about $84 billion
• Analysts say investors shouldn’t overreact to Buffett’s move

Berkshire’s portfolio reveal comes just days after Apple released its own quarterly results, which showed a return to revenue growth and signaled that new AI features will boost iPhone sales in the coming quarters.

Photographer: SeongJoon Cho/Bloomberg
By Carmen Reinicke

August 4, 2024 at 11:34 PM GMT+8
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To some, Berkshire Hathaway Inc.’s gutting of its Apple Inc. stake could be interpreted as a lack of conviction in the iPhone maker’s growth story. But many on Wall Street are urging investors to look past the news and stay calm.

The Warren Buffett-led conglomerate revealed Saturday that it sold almost half of its position in the tech giant during the second quarter. Its stake now stands at roughly $84 billion, down from about $140 billion at the end of March. The selling took place during a torrid run in the stock market that sent Apple shares 23% higher and pushed the S&P 500 from one record to the next.

 

[k1976]

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Markets

Carry Trade Rout Extends as Peso, Aussie Sink, Yen and Yuan Jump​

• Funding currencies the yen and yuan surge on short-covering
• Mexican peso retreats as pressure returns on EM currencies

By Matthew Burgess
August 5, 2024 at 8:16 AM GMT+8
Updated on
August 5, 2024 at 2:29 PM GMT+8


An unwinding of global carry trades is turning into a rout that’s helping jolt markets around the world.

The yen and yuan pushed higher Monday, while the Mexican peso’s slump extended as traders continued to roll back the popular trading strategy.

The peso fell more than 5% against the dollar, while the Australian dollar slumped about 2%. Two currencies often used to fund carry trades jumped — the yen by more than 3% and China’s yuan by about 0.7%.

 

[k1976]

TSMC Drags Down Taiwan as Index Suffers Worst Day in 57 Years​

By Charlotte Yang and Betty Hou
August 5, 2024 at 1:39 PM GMT+8
Updated on
August 5, 2024 at 2:15 PM GMT+8
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Taiwan’s benchmark stock index plunged by a record, as tech-heavy gauges in Asia took the brunt of a selloff triggered by fear of a deeper US economic slowdown.

The Taiex gauge ended 8.4% lower in Taipei, marking its worst selloff since 1967. The decline was led by AI-chipmaker Taiwan Semiconductor Manufacturing Co., which plunged by 9.8%, also a record daily decline. Its rivals in South Korea tumbled.
https://www.bloomberg.com/tips/

 

[k1976]

Oil Slides From Seven-Month Low as Stock Rout Offsets Iran Risk​

• Asian indexes slump, US and Europe equity futures decline
• Blinken says strike on Israel could begin on Monday: Axios

By Yongchang Chin and Rob Verdonck
August 5, 2024 at 7:10 AM GMT+8
Updated on
August 5, 2024 at 2:31 PM GMT+8
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Oil extended losses from the lowest close in seven months as a selloff in wider financial markets countered rising tensions in the Middle East, with traders watching for a potential retaliatory strike on Israel by Iran.

Brent futures slipped toward $76 a barrel — erasing this year’s gains — after closing at their lowest since early January on Friday. West Texas Intermediate dropped below $73.

A rout in global equities worsened on Monday on concerns around the economic outlook.

 

[k1976]

Europe Gas Falls With Broader Financial Markets on Demand Risks​

• Futures follow oil and equities lower on economic weakness
• Traders on alert for potential escalation in Middle East

By Anna Shiryaevskaya
August 5, 2024 at 3:24 PM GMT+8
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European natural gas prices declined, following a selloff in oil and broader financial markets amid mounting concerns over the economy.
Benchmark futures slid as much as 2.3% on Monday after surging 13% last week. Global stocks plunged on signs that the US economy is on the verge of deteriorating quickly, with the rout also pushing oil contracts lower.

 

[k1976]

Australia Raises Terror Threat Level for First Time in a Decade​

• Spy chief says escalation in the Middle East may cause unrest
• Government only lowered terror threat in November 2022

By Ben Westcott
August 5, 2024 at 10:52 AM GMT+8
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Australia has raised the nation’s terrorism threat level for the first time since 2014 as fears grow inside the intelligence community about online radicalization and community unrest over the Israel-Hamas war.

Prime Minister Anthony Albanese said Monday that the likelihood of an attack on Australian soil was now “probable” instead of “possible,” while cautioning that the change didn’t mean an event was imminent or inevitable.

 

[k1976]

https://www.cnbc.com/2024/08/04/cry...billion-in-value-as-bitcoin-ether-plunge.html


In the U.S. the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index’s worst three-week stretch since September 2022, when the market was in freefall. Amazon and Nvidia contributed to the declines.

Last week’s drop in stocks was tied in part to disappointing earnings, a weaker-than-expected jobs report, higher unemployment and a declining manufacturing sector. The U.S. Federal Reserve opted to hold its benchmark rate steady and didn’t promise a rate cut in September, which many market experts had baked into their forecast. Lower interest rates tend to correlate with better performance for risky assets.

Bitcoin’s price has reached its lowest level since February. The world’s largest cryptocurrency is trading at about $54,000. It’s still up almost 23% this year.

The price of ether, the native token underpinning the ethereum blockchain, fell to around $2,300 and has erased its gains for the year. Binance’s BNB token was down more than 15% and solana is trading 10% lower.




Investors are also looking out for new trade data from China and Taiwan this week, as well as central bank decisions in both India and Australia.

The latest crypto wipeout will be felt by a broader base of investors after the SEC this year approved new spot exchange-traded funds for bitcoin and ether. The ETFs have seen hundreds of millions of dollars flow into the coins. On Friday, CNBC reported that Morgan Stanley would soon allow its 15,000 financial advisors to pitch bitcoin ETFs to its clients, a first for Wall Street.

 

[k1976]

This time is really 全垒打

 

[syed putra]

Singapore share index drops 3.1%, Japan enters bear market on US recession fears​

Japan’s equity rout entered a third day as weak US jobs data added another blow to investor confidence left fragile from a surge in the yen. PHOTO: EPA-EFE
Updated

Aug 05, 2024, 01:26 PM

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TOKYO – A global stocks sell-off worsened on Aug 5 as fears the US could be heading for recession sent investors rushing from risk assets while wagering interest rates will have to fall rapidly to rescue growth.
In Singapore, the Straits Times Index was down 3.1 per cent at the midday trading break, after sinking as much as 3.3 per cent after trading opened.
Local banks led the losses in value terms, with DBS Bank down 5 per cent to $33.53, while UOB lost 4.7 per cent to $30.34 and OCBC Bank fell 3.9 per cent to $14.23.

What do they mean US recession fears. It is slready in recession a long time ago if not for manipulation of figures. There was no McDonalds and starbucks boycott. The people stopped going in because they cannot afford it.

 

[k1976]

leemember stock market is very efficiency..it fore run actual economy by 3-6mth?

What do they mean US recession fears. It is slready in recession a long time ago if not for manipulation of figures. There was no McDonalds and starbucks boycott. The people stopped going in because they cannot afford it.

 

[Byebye Penis]

Singapore share index drops 3.1%, Japan enters bear market on US recession fears​

Japan’s equity rout entered a third day as weak US jobs data added another blow to investor confidence left fragile from a surge in the yen. PHOTO: EPA-EFE
Updated

Aug 05, 2024, 01:26 PM

FacebookTelegram

TOKYO – A global stocks sell-off worsened on Aug 5 as fears the US could be heading for recession sent investors rushing from risk assets while wagering interest rates will have to fall rapidly to rescue growth.
In Singapore, the Straits Times Index was down 3.1 per cent at the midday trading break, after sinking as much as 3.3 per cent after trading opened.
Local banks led the losses in value terms, with DBS Bank down 5 per cent to $33.53, while UOB lost 4.7 per cent to $30.34 and OCBC Bank fell 3.9 per cent to $14.23.

this moment is like beginning of covid-recession. The wheels are coming off.

same pig, different lipsticks.

 

[Byebye Penis]

 

[k1976]

this moment is like beginning of covid-recession. The wheels are coming off.

same pig, different lipsticks.

That is how far Money Printing and AI Hype can do....buy us 2-3yrs of eutopia so normal people can open their wallet or borrow $$$$$ to indulge in huat huat atas lifestyle illusion.

 

[k1976]

Gold Price Forecast: XAU/USD attracts some sellers below $2,450, potential downside seems limited​

08/05/2024 00:19:41 GMT|ByLallalit Srijandorn

• Gold price trades on a weaker note near $2,435 in Monday’s early Asian session, down 0.40% on the day.
• US Nonfarm Payrolls rose by 114K in July vs. 179K prior, weaker than expected.
• The Middle East tensions might cap the gold’s downside.

Gold price (XAU/USD) edges lower to $2,435 on Monday during the early Asian session. However, the downside might be capped due to rising expectations of rate cuts by the US Federal Reserve (Fed) and the risk-off mood amid ongoing geopolitical tensions in the Middle East.

The disappointing US July employment data raised fears of a recession and triggered the possibility of Fed rate cuts in September. "The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting," said Jim Wyckoff, senior market analyst at Kitco Metals.

The US Bureau of Labor Statistics (BLS) showed on Friday that US Nonfarm Payrolls (NFP) rose by 114K in July from the previous month of 179K (revised down from 206K), weaker than the expectation of 175K. Meanwhile, the US Unemployment Rate rose to the highest level since November 2021, coming in at 4.3% in July from 4.1% in June.

Investors will take more cues from the US ISM Services Purchasing Managers Index (PMI) on Monday, which is expected to improve to 51.0 in July from 48.8 in June, In the case of the stronger-than-expected data, this might lift the US Dollar (USD) and cap the upside for USD-denominated Gold.

On the other hand, the escalating geopolitical tensions in the Middle East might boost the safe-haven flows, benefiting the yellow metal. The BBC reported that several nations have urged their citizens to leave Lebanon as worries mount about a wider Middle Eastern war. Additionally, the US general in charge of American troops in the Middle East arrived on Saturday as preparations continued for a potential strike against Israel by Iran in retaliation for the killing of senior Hamas and Hezbollah leaders, according to two US sources.

 

[k1976]

Now need to search for temp bottom..for technical rebound?

 

[Willamshakespear]

Now need to search for temp bottom..for technical rebound?

It need not be a technical rebound, as should a stock sink either naturally or unnaturally due to market manipulations, it would only mean VALUED Blue Chip stocks - of which are needed by Humankind over long term such as in food, health, tech, etc - are now available for the many to jump in & invest in, thus causing the stock to RISE again.......

 

[k1976]

It need not be a technical rebound, as should a stock sink either naturally or unnaturally due to market manipulations, it would only mean VALUED Blue Chip stocks - of which are needed by Humankind such as in food, health, tech, etc - are now available for the many to jump in & invest in, thus causing the stock to RISE again.......

Bear Trap??

 

[k1976]

Bill Gross says don’t buy the dip as stocks crash while Warren Buffett’s moves hint at ‘sell signal’​

BYJason Ma
August 4, 2024 at 3:03 AM GMT+8

Bill Gross, co-founder of Pacific Investment Management Co.
Patrick T. Fallon—Bloomberg via Getty Images

“Bond King” Bill Gross offered a bearish view of the stock market, just as the “Oracle of Omaha” Warren Buffett also signaled less optimism.

In a post on X early Friday, Gross said there are very few “bull stocks” and pointed to pipeline master limited partnerships, banks, and financials in general.

Investors should stop talking about buying the dip and start asking about selling recoveries,” the cofounder of PIMCO added.

The tweet came before stocks sold off hard on weak payroll data Friday morning but after a steep dive on Thursday, when a surprisingly low reading of the Institute for Supply Management’s manufacturing index sparked a reversal in the market.

On Saturday, Berkshire Hathaway’s second-quarter earnings report revealed that Buffett’s conglomerate sold a net $75.5 billion worth of stock and nearly halved its stake in Apple.

The transactions took place before the recent stock selloff, when the S&P 500 was regularly setting fresh record highs.


You could conclude this is another sell signal,” Jim Shanahan, an analyst at Edward Jones, told Bloomberg. “This was a far higher level of selling activity than we were expecting.”

Buffett’s stock dump was so aggressive that he didn’t rule out the sale of Berkshire’s remaining Apple stake, which he estimates is about 400 million shares. “I don’t think zero’s out of the question now.”

His stock selling spree has continued into the third quarter. Over the last few weeks, Berkshire has unloaded nearly $4 billion in Bank of America shares.