The collision of global markets and social mood

Wednesday, October 12, 2016

Wednesday -- Deutsche Bank Raising Money And Paying More For It

S&P E-mini Futures:
Down modestly.

Deutsche Bank is floating some bond deals to raise money. It just increased the size of its private bond issuance, raising $1.5b following a $3b deal, yet the yield was 290 basis points more than the benchmark, and close to junk terms. Hmmm. DB raising cash and paying up for it.

Yields are higher today across Germany, France, Italy, Spain, Netherlands, Portugal, Greece, and Switzerland. Hmmm.

Speaking of raising cash, Sprint wants to mortgage about 10% of its wireless spectrum, seeking to raise $3.5b from spectrum, according to WSJ.

And in Japan, BoJ Governor Kuroda said he will ease further if it is deemed to be "beneficial" and would lower rates further into negative territory if "merits outweigh costs."

Seems like ample cover to taper seeing as the markets don't seem to be cooperating.

Interesting that the FOMC minutes from September 20-21 will be released today at 2pm only to be preceded by speeches by the Fed's George and Dudley this morning, both voting members. Let the deliberate confusion begin.

Big story today is the GBP rallying as Theresa May allows a Brexit debate in UK Parliment.

Still no price lift-off and volume continues to come out.

WTI crude continues to hang at highs even as the terms of the OPEC deal to limit production sound more and more porous. NG still coming off its recent 3.30 high.

Gold and silver flat to negative as copper finds a slight bid.

S&P Outlook:
The S&P tested a 78.6% Fib support level and held, along with closing above a 1:1 Fib extension target after poking below it briefly. It also poked below its 2015 high and managed to hang on to that as well. So it may live to fight another day.

Could it be in a B-wave from the September 2119.12 low that needs a last rally into the 2170s to confound everyone, or is it finally on its way to the long-cited 2094.55-2103.25 zone?

Big question.

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