Page 2 - Lorretta Chen News Today

A sense of uncertainty swept through Chinese markets Monday as growing protests against covid-19 curbs and a record number of infections complicated the nations path to reopening.

Credit market rallies most in two years as inflation abates. The Goldman Sachs Short Index surged 10.9% Thursday, with a two-day 17.5% spike. Read more here.

Powell is an admirer of Paul Volcker’s fortitude, and he’s clearly drawing inspiration from the legendary Fed Chairman.

Chinese big four bank CDS each surged about 10 bps, the largest single-session gains since the July 15th peak risk off.

Hotter-than-expected August CPI and quarterly options/derivatives expiration made for a toxic mix. “Core” CPI was reported up 0.6% for the month (7% annualized!), double estimates.

Household Net Worth dropped $6.1 TN during Q2, the largest decline since Q1 2020. Read more here.

Global 'Risk Off' gathers momentum by the week. Crisis Dynamics fester, as global central banks coalesce around a united front for battling inflation.

Risk off had attained powerful momentum globally back in July. De-risking/deleveraging dynamics were increasingly fomenting illiquidity, contagion and instability across global markets.

Investment-grade bond funds posted outflows of $2.442 billion, while junk bond funds reported inflows of $4.828 million (from Lipper). Read more.

CPI was up 9.1% y-o-y in June, the highest rate, as we all know by now, since 1981. Read more.