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Tag Archives: financial markets

Gold In London And Hong Kong Is Used To Settle COMEX Futures

Physical gold located in Hong Kong and London is used to settle COMEX gold futures contracts through “Exchange For Physical” trading in the over-the-counter market. This post is a sequel to Understanding GOFO And The Gold Wholesale Market and COMEX Gold Futures Can Be Settled Directly With Eligible Inventory – in which Exchange For Physical (EFP) trading is explained and how it can increase or decrease open interest at...

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We’re All Hedge Funds Now – Central Banks Become World’s Biggest Stock Speculators

Submitted by John Rubino via DollarCollapse.com, At first, the idea of central banks intervening in the equity markets was probably seen even by its fans as a temporary measure. But that’s not how government power grabs work. Control once acquired is hard for politicians and their bureaucrats to give up. Which means recent events are completely predictable: SNB’s U.S. Stock Holdings Hit $62.4 Billion...

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The Brexit Effect: What’s Next for Markets

To say that the Brexit vote on June 23 took financial markets by surprise would be an understatement. The pound, British stocks, and Gilt yields had all risen sharply in the week leading up to the vote, only to crash once the results started coming in. Broadly speaking, strategists on Credit Suisse’s Global Markets and Investment Solutions and Products (IS&P) teams expect markets to remain volatile in the coming days and for investors to prefer safe assets to risky ones. Below, we...

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The recent decline in equity markets and the rationale for a bounce-back

The decline in equity markets since the start of the year stands out as one of the largest in history in January, not only in its magnitude but also its suddenness. One has to go back to 1897 to find such a bad start for equity markets. This note will analyse the situation on the markets and the prospects for a rebound. As often in a large correction, one can find many causes. We think the following are the most significant: Monetary policy running out of steam. The fall in commodities...

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Déjà Vu in China’s Latest Crash

Is it August 2015 again? In the first week of January, a spectacular Chinese stock market crash once again prompted officials to provide extraordinary stimulus measures and devalue the yuan. Just as before, gyrations in China pushed global markets deep into risk-off mode, with selloffs in Asian, European, and U.S. equities, as well as crude oil futures. The resolution is likely to be the same as it was last August, too, according to Kasper Bartholdy, Head of Emerging Market Fixed Income...

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Central banks are running out of steam

“After a long period when market volatility was relatively subdued, it has risen sharply this year. ” The Vix, a widely used measure of equity-market volatility, was in a systemic risk regime for 15 days this year, compared with just two days in 2014 and none at all in 2013, as shown by the chart below. This year’s experience of volatility is still not extensive in a historical comparison, but it still […]

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