🇯🇵📉 — 🇺🇸 Bloomberg | Forced Margin Selling Seen Exacerbating Japan Market Rout | Retail investors’ margin buying position reached 18-year high | Tax-free accounts had encouraged more Japanese to buy stocks | August 5, 2024:

"The swift downturn in the Japanese stock market likely triggered a massive wave of forced selling among retail investors, deepening the rout.

The Topix index plunged more than 7% with companies such as Mitsubishi Heavy Industries and Sumitomo Mitsui Financial diving more than 15%. The scale of selloff is such that some market players think individual investors are now being forced to dump stocks they had bought on margin.

Retail investors’ margin buying position rose to a 18-year high in late July even as the Nikkei slipped from its historic peak. Investors who have bought stocks using credit are often forced to close their positions when stock prices fall more than expected, unless they have enough extra cash for collateral to deploy."

#Geoeconomics

🗄 Archive

🔗 Source:

🇨🇳🥇 PBoC Gold Conduit Revealed—Chinese Central Bank Did Not Stop Buying Gold in May

➡️The Chinese central bank desperately needs to diversify its foreign exchange reserves since the beginning of 2022. Since then, the PBoC secretly buys large amounts of gold.

➡️At the same time, export of large gold bars from the UK to China explodes.

➡️A “surplus” in the Chinese market appears, while the bullion is not to be found in SGE vaults. As if it has gone up in smoke.

➡️A source indicates that gold shipments for central banks are often included in customs data.

➡️There is a correlation between PBoC official buying and UK exports to China, suggesting the Chinese central bank buys gold in England’s capital and lets banks supervise transport (maybe because the PBoC reaches the limits of its own capacity to ship gold when volumes are sizable).

➡️It all points towards UK gold exports to China are destined for the PBoC—although probably not every ounce of these flows is for the Chinese central bank. Clearly, the PBoC is accumulating more gold than it wants to disclose.

➡️When the PBoC stated it had stopped buying gold in May 2024, after continuous purchases for 18 months, I didn’t believe it. The PBoC has few reasons to cease growing its gold reserves in the current geo-political and monetary landscape with a plethora of challenges.

https://www.gainesvillecoins.com/blog/pboc-gold-conduit-revealed-chinese-central-bank-did-not-stop-buying-gold-in-may

@FelipeChannel

#BREAKING:

🇹🇼‼️📉Taiwan's stock-market suffers worst day in 57 years!

@FelipeChannel

📈‼️❌ — VIX (the CBOE Volatility Index, popular measure of the stock market's expectation of volatility based on S&P 500 index options) crossed above 52 today, for the first time since the market turbulence in April 2020 due to COVID19.

@FelipeChannel

🇧🇩 The Prime Minister of Bangladesh, Sheikh Hasini, has fled the country and resigned after anti-government protesters stormed her official residence in Dhaka.

🔗 Politics Global

#BREAKING:

🇺🇸🇯🇵📉FED to call emergency meeting today regarding interest rates after Japan stock market collapse

@FelipeChannel

🇧🇩 The military seizes power in Bangladesh after coup against PM Hasina.

Army Chief, General Waker-Uz-Zaman, announces he will lead a military interim government.

🔗 Mr Sinha

📈‼️❌ — VIX (the CBOE Volatility Index, popular measure of the stock market's expectation of volatility based on S&P 500 index options) crossed above 65 today.

These levels have only been reached 2 other times in history, in 2008 during the subprime crisis and during the market turbulence in April 2020 due to COVID19.

@FelipeChannel

🇬🇧 UK riots live: 400 arrested over violent disorder as Keir Starmer puts ‘standing army’ of police on alert

At least 400 people have been arrested after far-right riots rocked Liverpool, Bristol, Manchester, Hull, Belfast, Stoke and other cities across UK over weekend

Home secretary’s warning to rioters: ‘You are a total disgrace and there will be reckoning’

Speaking after the meeting, the prime minister said: “We will have a standing army of specialist public duty officers so that we will have enough officers to deal with this where we need them.

“The second is we will ramp up criminal justice. There have already been hundreds of arrests, some have appeared in court this morning.

“I have asked for early consideration of the earliest naming and identification of those involved in the process who will feel the full force of the law.”

🔗 https://www.independent.co.uk/news/uk/crime/uk-riots-today-protest-rotherham-tamworth-liverpool-bolton-news-b2591141.html