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

[Willamshakespear]

Bear Trap??

Grab a bag of potato chips, cut off the financial complex lingo, sit back & watch...there is more than meet the eyes.....never a dull moment on Earth with events that shake & shape our World...

 

[Willamshakespear]

For owners of Blue Chip stocks/companies, may they chill & not attempt to boost up their stocks with own earnings at such a sell off, which seems to be a coordinated battle. Such may bankrupt even strong banks. It is only Dividends to pay off at year's end to investors, & also loans but which are calculated per year & not per day. There are still hundreds of days left to the year which rates may rise or fall. So keep calm.

Warren Buffet is well renown investor, who makes a living & fortune by Buying & Selling stocks. Many investors follow his advices, BUT the REALITY of stocks are that no mortal has the ability to control, except thru perceptions of confidence or the lack, akin to gambling, to make an earning.

DO notice that even he is not telling his reasons for selling off Apple stocks, not on fundamentals, but on a hunch which is a gambling. The more funds one own, the more they are able to sway perceptions/hunches to be proven 'right'.

However, for those who invested in penny stocks or stocks that hold no value except for 'perceptions' such as cryptos, etf, etc, such stocks have no or little value to Humankind's survival, except for gambling. None can predict the course of a gamble, & each gambler knows the risks they took are their own, thus never to gamble unless one can afford the losses. How far this sell off will be, none knows yet.

 

[GOD IS MY DOG]

if USD/JPY ever go back to 100................i'll dump everything i got into it..............

 

[Willamshakespear]

if USD/JPY ever go back to 100................i'll dump everything i got into it..............

The economic fundamentals of Japan are not strong.

It is homogenous society facing rapidly rising aging population. The costs of healthcare are high, are born by the few remaining young, which in turn needs higher salaries to sustain, along with higher govt tax regimes to biz entities, to keep revenues streaming for its high costs of social expenditures...

There is a price for being 'exclusive' & unless it opens its doors to immigration or foreign labor, to boost up economic strengths as the Japanese are a hardworking & intelligent ethnic group, demise as a Japanese civilization is on the cards....

It needs not fear immigration so long as it learns the lesson of Europe. During the wars that plagued the Middle East, Europe open its doors & welcomed immigrants out of compassion but a CRITICAL MISTAKE it made was NOT to prohibit those immigrants from bringing along their cultures that FAILED their own nation, & thus the quagmire Europeans face today.

Every NEW immigrant to Japan MUST adopt the Japanese culture & way of life, give up their past, & pledge total allegiance to the democratic nation of Japan. Thus such measures, along with the Japanese work attitudes, perhaps one day USD/JPY will reverse back & beyond under 100.....

 

[k1976]

Sell off continues, circuit breakers triggered in APAC trade; odds of Fed cuts soar - Newsquawk US Market Open​

Monday, Aug 05, 2024 - 06:31 PM

• European bourses opened with marked downside, following the APAC pressure post-NFP with sentiment hit further by updates concerning Apple and Nvidia; US futures slump, ES -2.5% & NQ -4.0%
• APAC pressure was pronounced with circuit breakers triggered in Japan and South Korea; Nikkei 225, -12%, closed with a record daily points fall
• Hefty losses for the DXY with JPY the main beneficiary and USD/JPY down to a 141.70 base, EUR benefitting modestly from the USD downside
• Fixed benchmarks bid with the odds of Central Bank easing ramping up; implied odds of a 25bp Fed cut this week as high as 60%
• Crude conforms to the broader tone despite ongoing geopolitical tensions with metals pressured as JPY and Fixed are favoured over XAU currently
• Looking ahead, highlights include US Final Composite/Services Final PMIs, ISM Services PMI, Comments from Fed’s Daly & Goolsbee

 

[k1976]

FResh Fresh from MURIKA

Dow drops 1,000 points, Nasdaq craters 6% in global market rout: Live updates​

Hakyung Kim
John Melloy
Sarah Min

A trader works on the floor of the New York Stock Exchange.
Spencer Platt | Getty Images

U.S. stocks fell sharply on Monday as part of a global market sell-off centered around U.S. recession fears. Japan’s Nikkei 225 plunged 12% in its worst day since the 1987 Black Monday crash for Wall Street.

Fears of a U.S. recession were the main culprit for the global market meltdown after Friday’s disappointing July jobs report.

Investors are also concerned that the Federal Reserve is behind in cutting interest rates to bolster an economic slowdown, with the central bank choosing instead to keep rates at the highest in two decades last week.

 

[k1976]

There’s also an unwinding of the once-hot artificial intelligence trade going on. Tech shares were among the worst performers in early trading Monday:

• Nvidia tumbled 9% Monday after going into the session already down more than 23% from its recent high.
• Apple cratered more than 8% after Warren Buffett’s Berkshire Hathaway cut its stake in the iPhone-maker in half.
• Other losers included Tesla, down 7%, and Broadcom and Super Micro Computer down more than 9% apiece.

 

[k1976]

In Asia overnight, Japan stocks confirmed a bear market as Asia-Pacific investors had their first chance to react to the sour jobs figures in the U.S. from Friday. The 12.4% loss on the Nikkei — which closed at 31,458.42 — was the worst day for the index since the “Black Monday” of 1987 hit Wall Street. The loss of 4,451.28 points on the index was also the largest in terms of points in its entire history. The Dow lost more than 22% in a single day on Black Monday.

Other global markets were also severely impacted:

• U.S. Treasury yields tumbled on the recession fears and as investors flooded into bonds for a global safe haven. Bond prices move inversely to yields. The benchmark 10-year note on Friday yielded 3.76%, down from where it was one week previously at 4.20% and the lowest in a year.
• Bitcoin tumbled from nearly $62,000 Friday to around $52,000 on Monday.
• Europe’s Stoxx 600 was off by 2.6% in London.
• The CBOE Volatility Index shot higher to above 53, its highest since the early days of the pandemic in 2020.

There is also chatter about the unwind of yen “carry trade” adding fuel to the global market decline after the Bank of Japan raised interest rates last week. The yen is rising in value vs. the U.S. dollar, ending a practice of traders borrowing in the cheap currency to buy other global assets.

 

[k1976]

 

[k1976]

Investors are unwinding the biggest ‘carry trade’ the world has ever seen, SocGen strategist says​

Published Mon, Aug 5 20249:22 AM EDT

Sam Meredith@in/samuelmeredith@smeredith19
WATCH LIVE
Key Points

• A rapid unloading of “carry trades” extended on Monday, with market participants seeking to roll back on the popular trading strategy amid a dramatic global sell-off in risk assets.
• Carry trades refer to operations wherein an investor borrows in a currency with low interest rates and reinvests the proceeds in higher-yielding assets elsewhere.
• “You can’t unwind the biggest carry trade the world has ever seen without breaking a few heads. That is the impression markets give us this morning,” Kit Juckes, chief foreign exchange strategist at Societe Generale, said in a research note published Monday.

https://www.cnbc.com/2024/08/05/car...inding-is-underway-amid-a-stock-sell-off.html

 

[Dr Christopher Cheok C S]

jaPANIC

 

[Dr Christopher Cheok C S]

Warren Buffett holds more T-bills than US Federal Reserve

 

[ftan42]

The rest of the world is NEXT

 

[k1976]

All is not lost....​

​

Only $6.4 Trillion Stock Wipeout Has Traders Fearing ‘Great Unwind’ Is Just Starting...sub sub water lah?​

• Worries of US slowdown, AI bubble drive global market rout
• ‘There are falling knives everywhere,’ one analyst says

Traders on the floor of the New York Stock Exchange (NYSE).Photographer: Michael Nagle/Bloomberg

By Ruth Carson, Lu Wang, Vildana Hajric, and Bailey Lipschultz

August 6, 2024 at 5:20 AM GMT+8
Updated on
August 6, 2024 at 10:40 AM GMT+8
Save

The numbers flashing on trading screens on Monday were shocking even to market veterans.

In Tokyo, the Nikkei was down 12%. In Seoul, the Kospi sank 9%. And when the opening bell rang in New York, the Nasdaq plunged 6% in seconds.

Cryptocurrencies sank; the VIX, a gauge of stock market volatility, skyrocketed; and investors piled into Treasury bonds, the safest asset of them all.
https://www.bloomberg.com/tips/

 

[k1976]

Bro Glockman, u can now save some $ when u bring egg to this hawker....bring back good memory?

Controversial CKT hawker offers $0.50 off if you bring your own egg​

Isabel Michael
Mon, 5 August 2024 at 6:00 pm SGT2-min read

Back with another National Day promotion, Liang Ji at Coffee & Tea Coffeeshop will be offering diners Atas Fried Oysters for just S$5.90 (O.P S$18). Moreover, there will be an extra S$0.50 off if you bring your own egg!

Credit – Liang Ji
The stall, run by Dominic Neo, is known for its bright yellow Pikachu get-up and his revolutionary take on char kway teow, among other dishes with unique flavour combinations.

Liang Ji - Bring Your Own Egg
This bring-your-own-egg system is not only an innovative move to encourage sustainability but also a way to add a personal touch to your meal. Their Atas Fried Oysters are renowned for using fresh, plump oysters from Japan, making them the only stall in Singapore that uses this premium ingredient at such a great price.

 

[k1976]

The rest of the world is NEXT

LEemember there is a wise saying...never say die...u fail is because u never think harder enough

 

[k1976]

Asia Markets

Japan stocks rebound as much as 10% after historic losses; other Asia markets also recover​

Published Mon, Aug 5 20248:00 PM EDTUpdated An Hour Ago

Lim Hui Jie

Dylan Butts@in/dylan-b-7a451a107
WATCH LIVE
Key Points

• Japan’s Nikkei 225 and the broad-based Topix climbed more than 8%.
• The Reserve Bank of Australia will release its RBA cash rate later today, with economists expecting the rate to remain steady at 4.35%.

The upscale shopping district of Ginza in Tokyo, Japan, on Saturday, May 4, 2024.
Bloomberg | Bloomberg | Getty Images
Japan stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets also opened higher.
Japan’s Nikkei 225 — which saw its largest loss in the previous session since the 1987 Black Monday crash — and the broad-based Topix gained as much as 10% before paring gains to 8%.

The Bank of Japan raising rates to their highest level since 2008 on July 30 caused the yen to strengthen to a seven-month high, pressurizing stocks.

Markets globally were also spooked by fears of a U.S. recession stoked by a weaker-than-expected jobs report.

Japan’s heavyweight trading houses all saw rebounds of over 8%, with Marubeni up over 13%. Softbank Group Corp jumped almost 10%.

 

[k1976]

Markets

Robinhood says there will be no 24-hour trading on Monday due to issue at third-party venue​

Published Mon, Aug 5 20247:53 PM EDTUpdated An Hour Ago

Jesse Pound@/in/jesse-pound@jesserpound
WATCH LIVE
In this article

• HOOD+1.07 (+6.52%)

Follow your favorite stocksCREATE FREE ACCOUNT

Spencer Platt | Getty Images
Brokerage firm Robinhood announced on Monday evening that it would not offer overnight trading due to an issue with its execution venue.

The company said in a post on social media site X that Blue Ocean ATS, the third-party firm that Robinhood works with for round-the-clock trading, has suspended its overnight market.

“Robinhood 24 Hour Market’s execution venue, Blue Ocean ATS (BOATs), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx. 8 PM ET will be routed for execution starting at approx. 4 AM ET tomorrow.

You may cancel your order at any time, and can still place an order for another trading session,” the statement said.

It is not clear if the suspension will last beyond early Tuesday morning, or if other brokerage firms that offer overnight trading are affected.

A spokesperson for Blue Ocean told CNBC in an email Monday night that the firm experienced capacity issues the previous night, leading to “a small percentage of trades” needing to be canceled. The firm will be migrating to a new technology system in the next two weeks, the statement said.

The announcement from Robinhood comes after several firms, including Charles Schwab, suffered technical issues on Monday that temporarily prevented some of their users from accessing their brokerage accounts.

 

[GOD IS MY DOG]

The economic fundamentals of Japan are not strong.

It is homogenous society facing rapidly rising aging population. The costs of healthcare are high, are born by the few remaining young, which in turn needs higher salaries to sustain, along with higher govt tax regimes to biz entities, to keep revenues streaming for its high costs of social expenditures...

There is a price for being 'exclusive' & unless it opens its doors to immigration or foreign labor, to boost up economic strengths as the Japanese are a hardworking & intelligent ethnic group, demise as a Japanese civilization is on the cards....

It needs not fear immigration so long as it learns the lesson of Europe. During the wars that plagued the Middle East, Europe open its doors & welcomed immigrants out of compassion but a CRITICAL MISTAKE it made was NOT to prohibit those immigrants from bringing along their cultures that FAILED their own nation, & thus the quagmire Europeans face today.

Every NEW immigrant to Japan MUST adopt the Japanese culture & way of life, give up their past, & pledge total allegiance to the democratic nation of Japan. Thus such measures, along with the Japanese work attitudes, perhaps one day USD/JPY will reverse back & beyond under 100.....

currencies are hardly determined by economic strength...............just look at SingDollar vs Hong Kong Dollar all these decades.............

look at currencies of Yemen, Oman and Jordan..............stronger than USD...........

 

[k1976]

currencies are hardly determined by economic strength...............just look at SingDollar vs Hong Kong Dollar all these decades.............

look at currencies of Yemen, Oman and Jordan..............stronger than USD...........

It is determined by finacial activities and Agreed-Upon Price backed by many complex hedging and official papers