Sept 16 FUBAR is the US translation

–US interest rate futures had a modest bounce Monday, with most eurodollar contracts up 2 -2.5 bps.  The action yesterday was in Nasdaq as the index fell around 1%.  Tesla sank 9%, a loss of about $3 billion in market cap.  While some of the selling is likely making room for the Alibaba IPO, which is expected to raise about $22b, valuation levels in general are becoming more of a concern (TSLA).
–The OECD cut growth forecasts and urged aggressive measures from the ECB to ward off deflation.  China’s economy is also slowing, evidenced by falling commodity prices.  Since the July FOMC crude oil is off about 10%, though for the time being is finding responsive buyers around 91.   Aussie continues to fall, testing new lows this morning near 89.25.   PPI this morning expected 0.0.
–Fed doves will likely win out at tomorrow’s FOMC, but military hawks are gaining more influence as the US bombed ISIS positions near Baghdad, stepping up the heat in a clear offensive move.  The US is back in an Iraq war, whether admitting it or not.  In other obvious news, French Prime minister Valls is now privately admitting “in three to six months, if the situation isn’t reversed, we’ll be foutu”, according to Le Monde.

Posted on September 16, 2014 at 5:45 am by alexmanzara · Permalink
In: Eurodollar Options

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