Global Equity markets are getting crushed this morning.
- Japan, Nikkei (-3.5%)
- China, Shanghai Comp (-3.2%)
- Germany, DAX (-1.3%)
- Italy, FTSE MIB (-2.3%)
The common refrain cited by mainstream media this morning is Brexit risk ... but that's a mirage. "The Old Wall will blame Brexit, but stocks in London are only -0.39% - blame #GrowthSlowing," Hedgeye CEO Keith McCullough wrote this morning.
Here's more analysis from McCullough in a note sent to subscribers this morning:
"... Not that this would matter, but Japan, China, Germany, Italy, etc. are all in crash mode from 2015 cycle highs – Nikkei hammered -3.5% last night (-23% from July 2015); Shanghai -3.2% overnight (-45% y/y); Italy -2.4% (-30% from July 2015) #GrowthSlowing."
Take a look at Japan...
... And China
Meanwhile, over in Europe...
Italian equities lead the losers:
... German equities are still crashing:
While global equity markets get eviserated, our favorite Macro positions like Long Bonds (TLT) and Gold (GLD) are winning. McCullough continues:
"Our call for an all-time low this year in the UST 10yr is playing out and the Long Bond remains our Best (Long) Macro Idea – 1.62% 10yr in the USA, taking it to -65bps YTD; Germany 10yr testing negative at 0.01%, Swiss 10s new lows at -0.51%."