Global Stock Rout Is Spreading As Investors Are Dumping Almost Everything

If you’re just waking up, then you’ll see that emerging markets are getting routed again.
Whether its Thai stocks, Brazilian bonds, or the South African Rand (its currency) investors are dumping it all.
This is a complex topic, and there are some idiosyncrasies that make each country different from another (of course), but there are 3 big themes.
The first one is the rise in US interest rates.
For the first time in awhile, real US 10-year interest rates (which is nominal interest rates adjusted for inflation) have turned positive.

FRED

More importantly than the fact that they’ve turned positive is the fact that there’s just been a big spike in US real rates.
Read more: http://www.businessinsider.com/whats-slamming-emerging-markets-2013-6#ixzz2VudfcEGM
Rate shock seen hitting equities hard
http://blogs.marketwatch.com/thetell/2013/06/11/rate-shock-seen-hitting-equities-hard/
Futures tumble as global stock rout spreads

U.S. stock futures fell sharply on Tuesday, tracking losses in global markets after the Bank of Japan disappointed some investors by holding its policy steady, and worries about Federal Reserve tapering continued to haunt the market.

Global stocks were also rattled as a German constitutional court began to consider the legality of the European Central Bank’s pledge last year to buy the government bonds of weaker euro-zone countries to prevent the single currency from breaking up.

http://www.marketwatch.com/story/stock-futures-drop-bank-of-japan-ecb-eyed-2013-06-11?dist=beforebell

10 Things You Need To Know Before The Opening Bell

Global markets sell off, Indian rupee hits record low, and protests continue in Turkey.

• Asian markets were lower in overnight trading with the Nikkei down 1.45%. Europe is selling off with Italy down nearly 2%. U.S. futures are down.

• The Bank of Japan failed to take any measures to address a month of volatility in bond markets. Instead it is sticking with a plan to double its monetary base and help re-stimulate the economy. The plan to double the monetary base was expected to cause yields to fall and bond prices to appreciate, but has done the opposite. Jeff Gundlach explains what is going on in global markets >

• The Indian rupee plunged to a record low of 58.98 per dollar on Tuesday. Reuters reports that it was intervention on the part of the Reserve Bank of India that stemmed further declines. What’s the matter with India?

Read more: http://www.businessinsider.com/opening-bell-june-11-2013-6#ixzz2Vue0jv5Y
Yen Soars Most In Over Three Years, Nikkei Futures Plummet

Two days ago we made a very simple observation: “Whenever Goldman openly commands the muppets to buy, you know the situation is serious, and Goldman has a lot of unwinding to do. Which is precisely what just happened following the Squid’s reco to buy Nikkei September futures (NKU3) ahead of the BOJ meeting. What is Goldman’s thesis in a nutshell: hope may be fading in Abenomics, but the “incentives for Governor Kuroda to use the [upcoming BOJ] meeting to signal a firmer and clearer commitment to the easing course, and to highlight the potential to do more, are high and rising.” In other words, please bet the farm on more of the same jawboning that lead to a 20% loss for anyone who bought as recently as 2 weeks ago. Oh, and by the way, complete the sentence, whenever a client is buying from a Goldman flow trader, the Goldman flow trader is [____].“ The answer, by the way, was “selling“, as any muppet who may have taken Goldman’s most recent advice just found out.


http://www.zerohedge.com/news/2013-06-11/yen-soars-most-over-three-years-nikkei-futures-plummet
Press Preview Of German Constitutional Court Decision
http://www.zerohedge.com/news/2013-06-11/press-preview-german-constitutional-court-decision
Bonds selling off on this dreadful possibility

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/06/Taper%20perspective_1.jpg
Russian Market‏@russian_market27 m
Car sales in Russia drop -12% in May.
Bond Market Tremors Get Louder
It appears the cracks in the armor of the central bankers created by an over-enthusiastic BoJ’s impact on the quadrillion JPY JGB markets are now rippling through the global market place. While every talking head that dares to speak has proclaimed the weakness in bonds as nirvana for equity bulls, it seems they were wrong, very wrong. As bond market tremors ignite everywhere, so equity markets come a little unglued at the prospect that the Fed, ECB, BoJ, and PBOC may not be so omnipotent after all…

Bond markets…


Stock Markets…


Charts: Bloomberg
http://www.zerohedge.com/news/2013-06-11/bond-market-tremors-get-louder

YEN 97!!!
http://www.marketwatch.com/
Everything is selling off today: stocks, bonds, and commodities around the world getting crushed
The sell-off in government bonds has gone completely global as concerns over Federal Reserve tapering of monetary stimulus infect the market.

Everywhere this morning, bond yields are up huge as investors dump sovereign debt.
In the United States, the 10-year yield is up 6 basis points to 2.26%, its highest level in over a year.
In the eurozone, French 10-year yields are up 5 basis points to 2.23%, Germany is up 3 basis points to 1.63%, Italy is up 15 basis points to 4.43%, and Spain is up 14 basis points to 4.471%.
Portuguese 10-year yields are up 37 basis points to 6.49%, and Greek yields are up 93 basis points to 10.28%.
Elsewhere in the developed world, the Japanese 10-year yield is up 5 basis points to 0.88%, Canada is up 5 basis points to 2.25%, Australia is up 11 basis points to 3.40%, and Switzerland is up 10 basis points to 0.84%.
Moving to emerging markets, Brazilian 10-year yields are up 14 basis points to 4.03% Mexico is up 14 basis points to 3.46%, Russia is up 15 basis points to 3.90%, and Turkey is up 31 basis points to 4.53%.
Read more: http://www.businessinsider.com/global-government-bond-sell-off-2013-6#ixzz2VuerG04Y
China Trade War Escalates
http://www.zerohedge.com/news/2013-06-11/china-trade-war-escalates
Its all about Yen-Carry-Trade.
Japanese Yen strengthening.
Chart to watch:
http://www.advfn.com/p.php?pid=qkquote&symbol=FX^USDJPY
A German banker fell asleep and turned a minor transfer into millions
http://www.businessinsider.com/german-banker-transfers-millions-2013-6
EL-ERIAN: The Market ‘Sucking Sounds’ Are Getting Louder As Four Forces Come Together
http://www.businessinsider.com/el-erian-on-the-liquidity-gap-2013-6
US-Dollar vs Yen.
When it drops, stocks drop.