|Tues, May 24, 16|
|[Stockboardasset] S&P futures 53bps|
|[Stockboardasset] Nikkei 50bps
Overnight, DXY continues to stabilize on the 95 handle testing the 95.50 mark. WTI along with /ES catch 3am-4am liquidity in a full risk advancement. Asia stocks close near 11 week lows, as global traders prepare for another FED rate hike. WTI fundamentals have slowly returned in sync with dollar appreciation. All of the sudden, everyone is concerned growing exports increasing in OPEC with no end in sight. As BBG reports, but did not break the story of a parking lot of tankers of Asia is a major concern. This opens up the theory of China’s credit infused commodity boom is running its course, and could have negative implications on global economies this summer. After all, it was more failed supply side economics. There has been a lot of conversation on China’s NPLs and as of recent as FITCH has become very vocal to the matter. For the PBOC to stimulate growth ex credit induced, we look at the DEVAL of CNY, which may flare up near term. AUDJPY is testing 1Q16 lows signaling stress re-entered the region in early May. USDJPY trajectory is of negative slope, but remains in a counter wave since March testing the 110 handle. G7 FX leaders have stressed to the BOJ to limit FX intervention. Developing a rift between JPN & US. Exports prior sessions are in a 7 month decline printing -10%. Companies in JPN have stressed strong YEN appreciation is eating away in profits. Toyota recently stressed YEN appreciation has forecasted -35% if profits for the quarter. Over to the EU, where Moody’s downgrades DB debt two notches above junk. Strong rate hike forecasts for US enable risk on in EU for equities. Banking complex remains in stress at 2008 levels, as well as equity indexes.