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Ukshep

Global Stocks Rebound From Overnight Lows, On Edge Ahead Of Trump-Xi Meeting

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&P futures are little changed at 6am ET, trading at 2347.55 and paring an earlier 0.4 percent drop, on the back of the USDJPY ramp which for the second day in a row has emerged alongside the European open, just as the key 110 support level appears in danger, soothing concerns about the Fed's balance sheet reduction and "some" Fed officials warning that stocks have gotten expensive.|

The S&P plunged in the last 90 minutes of trading on Wednesday led by banks and energy companies. While Asian stocks fall in early trading, European bourses rebounded from session lows alongside the S&P and USDJPY. In Europe, media, bank and insurers lead the decline but have since cut their losses as the market's attention shifts to the upcoming summit between Trump and Xi.

Ahead of Mar-A-Lago meeting, central banks remained the dominant theme for markets on Thursday, with traders troubled by the prospect of a shrinking Fed balance sheet and the euro briefly tumbling then recouping much of its losses after Mario Draghi reaffirmed ECB monetary policy. Specifically, the ECB's President warned Thursday that it was too early to reduce the bank's massive monetary stimulus, despite signs of strength in the eurozone economy, and pushed back against suggestions that the ECB might raise interest rates soon. Top ECB officials have sent out mixed messages in recent days on whether the central bank is ready to wind down sweeping stimulus measures such as its EUR2.3 trillion ($2.5 trillion) bond-purchase program and subzero interest rates. As a result, market expectations for an ECB rate hike in one year have declined sharply over the past two weeks.

http://www.zerohedge.com/news/2017-04-06/global-stocks-rebound-overnight-lows-edge-ahead-trump-xi-meeting

A lot of info to sift through. And since this meeting could be a catalyst I do think it is good that we discuss this!

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He has complained about them altering their dollar value. It is considered cheating. If you have a low dollar it makes you more in exports but cost you more when importing. China is an exporting nation. Normally every time you export like that it increases your currencies value. China drops theirs at will to keep their currency competitive and the USA can't do this with their dollar.

The people behind Trump want to be able to fight China economically with vast amounts of capital. Their efforts are futile while China is prepared to alter the currencies value at will. Expect some talk around that.

N Korea. If China is willing to take down N Korea and open up it's ports...???? If China will not assist N Korea if the USA does it..???? It could be like a meeting where you are deciding how N Korea is carved up. The money to be made for China in exports will be the bait offered.

Then we have China dropping the US dollar, that is a big negotiating chip. What would the US do to keep them in the dollar?

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44 minutes ago, Guitar Doc said:

Then we have China dropping the US dollar, that is a big negotiating chip. What would the US do to keep them in the dollar?

And to answer that you need only answer another question. What does the US have that china wants?

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2 minutes ago, Ukshep said:

And to answer that you need only answer another question. What does the US have that china wants?

Consumers. Oil. China is the biggest importer of Oil in the world, they don't have enough and they keep growing.

They also need food. This is desperate for them now. They don't have modern agricultural practices sorted at all. They hire outsiders to teach them. But it won't be enough to cover population expansion. That is why they have been buying NZ dairy farms in big blocks. They are trying to secure their food supply and hedge it against adversity shall we say. The USA grows a lot of crops, could do with another customer who buys in big volumes. US agri is lucrative and a primary stream of revenue, it adds money into the system buy allowing money to enter the system via cheap seeds producing lucrative crops each.  Crops turn small amounts of capital into far lager amounts making it a primary financial flow.

Those closest positioned to primary financial flows (like Oil) get wealthy.

 

I smell a lot of greed at this meeting. From both sides. There is a lot of money to be made in collaboration between the USA and China, the rest is all details. You can't own more than 50% of a business in China as an outsider. They don't like that either. That means as much as you make you make the Chinese govt the same amount. Business people can't out compete the govt when they do that. Personally the only honest business deal is 50:50% as far as I am concerned. Not like those oil deals where the nation gets 5% royalties while the oil corporation gets 95%, That is how the Oil corporations like to do business. I think the Chinese model offends their sensibilities.

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There is another angle to consider.

A serious agreement between China and the USA would fix both of their economies, it also might cut Russia out as a concession.

The angle I was thinking about was If Trump pulls off a deal that is going to work he gets to keep his job in the public eye. It would bolster his public support a lot. There might be a desire to make a deal happen rather than the usual diplomatic insults said not with what one, says but with what one doesn't say. Most of these things have just been stalling previously, like porn stars without the fluffers, all talk and no action. I think Trump will well lube this encounter.

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6 minutes ago, Guitar Doc said:

There is another angle to consider.

A serious agreement between China and the USA would fix both of their economies, it also might cut Russia out as a concession.

The angle I was thinking about was If Trump pulls off a deal that is going to work he gets to keep his job in the public eye. It would bolster his public support a lot. There might be a desire to make a deal happen rather than the usual diplomatic insults said not with what one, says but with what one doesn't say. Most of these things have just been stalling previously, like porn stars without the fluffers, all talk and no action. I think Trump will well lube this encounter.

I read your post. zoned out a little :( 

I have this to share: A coalition of sorts. Gog and Magog!

Not sure why!

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be wary of zerohedge articles, we are always being fed data that creates the picture of the world we want, our divine creative power of our brains will always confirm our beliefs

 

believe the market is gonna crash and you will find information to keep you believing, likewise belief in space creates space... let those who wish to be deceived be deceived

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