25 Jun 2013
Flash: Blood on the Shanghai dance floor – Societe Generale
FXstreet.com (London) - Kit Juckes at Societe Generale said there's blood on the Shanghai dance floor as the PBoC failed to ease money market stress and maintained pressure on the shadow banking system.
Kit Juckes continues by saying Fed Governors did nothing to suggest the Fed is panicking about the market reaction to the tapering calendar. Their SG Risk Sentiment Indicator is down at 0.03, in the darkest depths of risk aversion. Kit Juckes noted today sees US durable goods orders, home prices, the Richmond Fed index, consumer confidence and new home sales; but say’s risk sentiment cannot recover until Treasuries stabilise and volatility eases off. Any credit or EMFX bounce today is likely to be temporary.
Kit Juckes continues by saying Fed Governors did nothing to suggest the Fed is panicking about the market reaction to the tapering calendar. Their SG Risk Sentiment Indicator is down at 0.03, in the darkest depths of risk aversion. Kit Juckes noted today sees US durable goods orders, home prices, the Richmond Fed index, consumer confidence and new home sales; but say’s risk sentiment cannot recover until Treasuries stabilise and volatility eases off. Any credit or EMFX bounce today is likely to be temporary.