Arguably the most important chart in macro – FX reserves stopped rising for 1st time in 70 yrs. Post 3Q2016 this meant US Trilemma in force – (Luke Gromen)
Fed can have 2 of 3 of higher USD, rates, & stocks on sustained basis
Ned Bank Global $-Liquidity metrics have accelerated to the downside – we are “red” light territory. USD stronger, Equities/Comm/EM lower. We are in uncharted territory as global fin conditions tighten.( Mehul Daya)
The Last domino to fall ….U.S. junk bonds are showing a bit more nervousness than they have in earlier bouts of equity weakness. Since October 2, they’ve lost 1.5%. Yields on the debt have climbed to the highest in two years.(Lisa)
India’s Sales Managers Index report shows some moderation in business activity growth.
