Talking Points:
• The PBoC announced a large cut to its RRR (equivalent to stimulus) which lifted global equities
• One region that was explicitly left out of the climb was China (Shanghai Composite and Hang Seng)
• Risk trends, the Dollar's policy opportunity and the Euro's Greece troubles top my list of opportunities
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China stepped up its contribution to keeping the global financial system buoyant this weekend with a reserve requirement cut that feels like stimulus. Global equities responded with a rally to recovery some of Friday's lost ground - though not erase it. It was notable that the S&P 500 fell well short of a record high - now matching the longest bull drought since January 2013 of 34 straight trading sessions since the last record - but there was a bigger surprise. Chinese shares tumbled despite the source of the global speculative swell. What does this mean for risk trends? Meanwhile, the USDollar's major channel break last week has found very little follow through and a strong bounce through Monday's session. The Greenback will be a difficult currency to trade through the 'medium-term'. More straightforward in its anxiety but still uncommitted is the Euro's concern with the Greek debt clock. We discuss all these trading themes in today's Trading Video.
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