Sunder’s List


(Photo credit: Thomas Dimson)

Monday morning green: S&P futures +0.6%, German Dax futures +0.8%. Nikkei +0.4%, Australia +0.5%, Hang Seng flat.

The macro keeps getting worse: In Europe, statements and their denials are issued simultaneously. Here’s a roundup:

  • Fears about contagion from Greece have pushed Madrid’s stock market to 2003 levels. Spanish, Italian, Russian and Brazilian equities have all entered bear markets, down more than 20%. (FT)
  • Major global banks are advising clients to prepare for a stock market rally and a resurgence of the euro if Greece is forced out of monetary union, betting that world authorities will flood the international system with liquidity. (Telegraph)
  • Failure to form a government that would implement the bailout terms would mean a “probable” exit from the currency union, Fitch said while cutting Greece’s rating to CCC from B- (Reuters)
  • Failure of the euro would amount to a huge defeat for the broader European project, the attempt to bring peace, prosperity and democracy to a continent with a terrible history. (NYT)

Marc Faber: Forget Greece, which is an “insignificant” economy, it is China that poses the biggest risk to the global economy. (CNBC) Here’s a roundup:

  • Chinese new home prices showed a broadening slowdown in April: 43 cities showed declines in prices compared to March, while 46 cities showed declines on a year-on year basis. (MW)
  • Chinese dealers are struggling with the rising number of unsold cars that’s threatening to deepen price cuts. Demand was the slowest in the first four months since 1998. (Bloomberg)
  • When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble. (Reuters)
  • And money seems to be flowing out of EM (FT)

Good luck trading!

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