Gold Surges, Global Stocks Slide As “Super Thursday” Risks Loom

Tuesday, June 6, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jun 6, 2017

With traders realizing that the “Thursday Turmoil Trifecta” looms, world stocks dropped and safe-haven assets rose as investors focused on the growing tension in the Middle East, while caution spread across markets in a week full of risk events including James Comey’s congressional testimony to the ECB’s policy meeting and Britain’s increasingly uncertain election, all in the span of 24 hours. As a result, European and Asian stocks as well as S&P futures all fell, while gold, yen and Treasuries gained.

World stocks edged further away from record highs hit last week, the MSCI world equity index fell 0.12%. Crude continued to decline despite OPEC’s best efforts to stabilize its price, with WTI edging lower by 0.2% to $47.33 a barrel, after dropping as much as 1% and rising as much as 0.7% earlier.

Quick recap of the trading action so far courtesy of Bloomberg’s macro squawk wrap:

Europe follows defensive Asian session with little appetite for risk before events later in the week. USTs continue overnight rally, Eurodollar curve bull-flattens, bund and gilt futures move higher in tandem. DAX reopens after Whit Monday holiday and underperforms other European equity markets, construction sector lags; Banco Popular trades with small gains +1.8% after recent heavy losses. USD/JPY at overnight lows amid broad risk-off, USD grinds marginally higher from overnight lows against G-10; spot gold trades approximately $5 away from YTD high, EMFX led lower by ZAR, which spikes lower after South African economy enters recession. Focus overnight on PBOC conducting a 498b yuan 1-year MLF operation, Hibor rates continue to normalize after recent spike higher.
In an otherwise quiet session, the big FX outlier was the yen which rose 0.7% to 109.70 per dollar, reaching the strongest level in six weeks, since April 21. The yen outperformed G10 currencies on haven demand while the pound also gained against the dollar ahead of Thursday’s U.K. election. Declines in stocks and U.S. Treasury yields prompted yen buying, leading it to break the key 110 level against the dollar in Asian trading.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter