Today is Quad-Witching day and it should be memorable with good volume, which is good since there is virtually no macro data today to speak of. The futures are up over a half percentage point suggesting a solid gap up at the opening.
Gold is tending up and Brent is trending down on a day where there is no financial reporting and normally would be a quiet day.
Here is the current market situation from CNN Money
European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.12% while France's CAC 40 is up 0.52% and London's FTSE 100 is up 0.23%.
(Reuters) - Simon Property Group Inc , the No.1 U.S. mall owner, raised its offer for Macerich Co three days after its smaller rival rejected its earlier offer, adopted a poison pill and changed board structure to prevent a hostile takeover.
TOKYO/SYDNEY (Reuters) - Australia said on Friday there was a lot of merit in the China-led Asian Infrastructure Investment Bank (AIIB) while Japan's finance minister signalled cautious approval of the institution that the United States has warned against.
Some parts of Europe witnessed a near total solar eclipse this morning, an event which, while fun to observe (not without the proper equipment please), presents a challenge for solar panels: namely, a lack of sun. As it turns out this same problem happens at night but, as WSJ reports, the rapidity with which an eclipse darkens the earth could cause blackouts if the energy grid can't tack up the slack quick enough. Here's more:
The solar eclipse will provide an acid test for a continent that has placed a big bet on renewable energyâ€"but whose aging electricity grids could buckle under the strain of a sudden drop in solar power.
"Given the growth of renewables across Europe in recent years, this will require an unprecedented amount of careful balancing of supply and demand across the grid," said Valentin de Miguel of consulting firm Accenture...
The partial disappearance of the sun Friday will place a huge strain on Europe's energy system. Normally, when the sun goes down, it takes about an hour for the light to fade. That gives time for electricity grids to substitute the power flowing from solar panels with electricity generated from traditional sources such as coal and natural gas.
An eclipse blocks the sun in just a few minutes, though, leading to a potential sudden drop of up to 35,000 megawatts of generation capacity. That is the equivalent of about 20 large coal-fired power plants coming off the grid at the same time. Conventional electricity suppliers will have to seamlessly substitute power to prevent blackouts, and then they must shut down capacity ...
"This gap between the 1% and the rest of America, and between the US and the rest of the world, cannot and will not persist," warns renowned trader Paul Tudor Jones during his recent TED Talks speech, as he addressed the question - can capital be just? Hoping to expand the "narrow definitions of capitalism," that threaten the underpinnings of society, Tudor Jones exclaims, "we're in the middle of a disastrous market mania," adding "one of worst of my life." Perhaps most ominously, he concludes, historically this ends "by revolution, higher taxes or wars. None are on my bucket list."
As TED blog reports,
Can capital be just? As a firm believer in capitalism and the free market, Paul Tudor Jones II believes that it can be. Tudor is the founder of the Tudor Investment Corporation and the Tudor Group, which trade in the fixed-income, equity, currency and commodity markets. He thinks it is time to expand the "narrow definitions of capitalism" that threaten the underpinnings of our society and develop a new model for corporate profit that includes justness and responsibility.
It's a good time for companies: in the US, corporate revenues are at their highest point in 40 years. The problem, Tudor points out, is that as profit margins grow, so does income inequality. And income inequality is closely linked to lower life expectancy, literacy and math proficiency, infant mortality, h ...
SHANGHAI (Reuters) - Jaguar Land Rover Ltd on Friday said it is recalling nearly 36,500 Range Rover Evoque sport utility vehicles (SUVs), after local media reported the British luxury carmaker used faulty gearboxes.
BRUSSELS (Reuters) - Greece said on Friday it was moving swiftly to meet creditors' demands for a detailed economic reform plan after Prime Minister Alexis Tsipras assured euro zone leaders his leftist-led coalition would speed up work to avert bankruptcy.
Quad-witching days are volatile on normal days, so in an environment of virtually zero liquidity, in which the market careens from one extreme to another simply based on whether the Fed utters one single word, in which volatility across asset classes is soaring, and in which it is all about igniting algo momentum, today's quadruple withicng should be memorable, which is good since there is virtually no macro data today to speak of.
As Nanex reminds us, during last year's quad witching on March 21, 2014, at 15:45:00, a new record was set for most trades in 1 second in NMS stocks (NYSE, NY-ARCA, NY-MKT and Nasdaq listed stocks and ETFs - approximately 8,000 symbols). The 3rd and 4th most active seconds were also set, at 15:50:00 and 15:55:00 respectively. The 2nd most active second was set at 10:00:00 on September 1, 2011. Today may surpass it.
If quad witching proves to be a dud, then there is always Europe's partial solar eclipse to fall back on: an eclipse which may ...
LONDON/MADRID (Reuters) - Spain's Banco Sabadell could look to expand further in Britain after agreeing a 1.7 billion pound ($2.5 billion) takeover of TSB , one of the biggest cross-border banking deals since the financial crisis of 2007-09.
PARIS/ZURICH (Reuters) - Switzerland's Holcim and France's Lafarge have agreed new terms for their plan to create the world's biggest cement company, giving unhappy shareholders in the Swiss firm a better deal.
LONDON (Reuters) - The euro nudged towards its best week in 18 months while yields on low-rated bonds fell as investors welcomed the Fed's cautious approach to raising interest rates and a reform pledge from Athens that could avert a cash crunch.
LONDON (Reuters) - Brent crude oil fell towards $54 a barrel on Friday and was on track for its third straight weekly loss, hurt by oversupply worries after Kuwait said OPEC had no choice but to maintain output levels.
ASTANA (Reuters) - The three main members of the Russian-led Eurasian Economic Union face a big economic challenge from the fall in global oil prices, Kazakh President Nursultan Nazarbayev said on Friday.
With oil prices plummeting over recent months, earnings figures across the energy sector have taken a significant hit â€" forcing oil and gas companies to explore ways to raise cash for day-to-day operations externally. UBS is clearly looking to tap into this demand by leveraging the newly added team, as it stands to gain from the existing situation on two fronts. Firstly, the team will beef up the services offered by UBS's reserve-based lending unit in Dallas.
LONDON/MADRID (Reuters) - British bank TSB has agreed to a 1.7 billion pounds takeover by Spanish lender Banco Sabadell in one of the biggest cross-border banking deals since the financial crisis of 2007-9.
Global growth suddenly hit the brakes in February this year. Presumably the FOMC is fully aware of this; which is why the last minutes were so full of caution despite all the bravado in relation to a June rate increase. The view taken in Epoch of Belief, Epoch of Incredulity (8) "Hedgehogging One's Bets" was that this bravado is a function of the threat to the Fed's independence from Rand Paul's proposed audit.
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