Thur, March 17, 16
08:45 ET Update: [Stockboardasset] S&P futures -22ps
08:45 ET Update: [Stockboardasset] Nikkei -136ps
08:45ET Update: [Stockboardasset]FTSE100 -54bps DAX -180bps
Overnight, Global Markets are sour post FED meeting of unchanged rates. The FED sights global economic risks, which is a far different from Dec’15. Something has spooked the FED, which is the commentary coming out of the Bank of Tokyo-Mitsubishi. In FX, the FED crushed the USD, and took the ECB, and BOJ with it, to side with China. USDJPY <112 handle, EURUSD >1.13, and USD <.95. We are concerned about carry trades unwinding from the EURUSD into EM and other various assets. Global equities are under pressure overnight, as the FED policy hold should of lifted markets. JPN225 and USDJPY continue their plunge to QQE2 levels. Regional equities in China were modestly up despite volatility in developed markets. EU sovereign, US treasury yields slide, but once again Gold is the clear winner. FED’s credibility continues to be in question. EU Regional equities are sliding into the 830am hour. BREXIT will certainty be on the plate again as the economic risk of removing Brittan from the EU flourishes in FX. In a 30-day course, Global equities have advanced due to an oil minister, G20 Meeting, and 3 central banks. Fundamentals weren’t involved, never the less central bank headline chasing was all the glamour. We warrant caution in the recent US Equity move.