FURTHER FURTHER READING
– How much blame does Mervyn King deserve?
– Testing Abenomics.
Home of oil sands, maple syrup, ice hockey, singing astronauts, William Shatner, the Bank of England’s governor-to-be and (rather poignantly) a lot of bears… Read more
A fresh rout in Japanese equities was signalled on Thursday, with the Nikkei 225 June future touching 12,600 at pixel on the CME. That’s 300 points or so below the official close in Tokyo earlier and about 3,300 points below the high on the June contract seen last month.
(UPDATE: This is proper carnage again. Nikkie June future at 12300, down 600 points post-pixel) Read more
The Aussie dollar is looking more like the South Pacific peso at the moment, but Australia is not alone in fending off the commodity currency backlash.
South Africa’s market is under similar pressure, and South African Reserve Bank governor Gill Marcus is not having a good time of it when it comes to guiding the markets out of the turmoil. Read more
The Great Draghini has spoken on negative rates, collateral and on volatility:
DRAGHI – HAD AMPLE DISCUSSION OF NONSTANDARD MEASURES
DRAGHI – DISCUSSED NEGATIVE DEPOSIT FACILITY
DRAGHI – TECHNICALLY READY FOR NEGATIVE DEPOSIT RATES, BUT NO REASON TO ACT RIGHT NOW
Live markets commentary from FT.com
ECB and Draghi day || France is threatening to upstage talks on the EU-US trade pact || The ESM will likely have a €50bn-€70bn limit on direct investments in banks || London should hand Libor supervision to EU, says Brussels || Pro-austerity Finland falls into triple-dip recession || Gabon seeks to reclaim Chinese oil assets || IMF admits to errors in international bailout of Greece || NSA collecting Verizon customer data, Guardian says || FBI and Microsoft take down botnet criminal network || SAC Capital told employees it expects to stay open following a wave of client redemptions || Finra in the US has increased its scrutiny of dark pools || Markets roundup || FTAV’s latest Read more
And the annual report from the St Louis Fed found that 62 per cent of the wealth recovery through the end of last year has been the result of rising stock markets — and stock ownership is concentrated among richer households.
Asian shares fell back towards their 2013 lows. The MSCI Asia Pacific index fell 0.7 per cent, towards its level in January. Japan’s Nikkei swung to a loss from a 1.7 per cent increase earlier, and the Topix fell more than 1 per cent, down 15 per cent from the five-year high it set in May. (Bloomberg)
The ESM will likely have a €50bn-€70bn limit on direct investments in banks. The condition on the bailout fund’s draft direct recapitalisation tool was outlined in a policy paper following six months of talks on breaking the “vicious circle” between sovereigns and banks. The limit to recapitalisation funds reflects the higher provisions on this kind of investment compared to the ESM’s more normal practice of lending to governments. (Reuters) Read more