Daily Market Update

Global Financial System Is ‘Unstable’ and Risk Of ‘Clearing System Seizure’, BIS Warns

– The pillars of the global financial system are fundamentally unstable which could lead to a frightening chain-reaction in the next crisis, BIS warns
– Giant “central counterparties” that clear the $540 trillion nexus of derivatives are vulnerable to failure in times of extreme stress
– The Bank for International Settlements said CCPs could cause “a destabilising feedback loop, amplifying stress” 

– Recent market ‘jolt’ will be first of many as easy money era ends – world’s top watchdog

by Ambrose Evans-Pritchard via Daily Telegraph

Credit: Bloomberg

The pillars of the global financial system are fundamentally unstable and could lead to a frightening chain-reaction in the next crisis, the world’s top watchdog has warned.

Giant “central counterparties” (CCPs) that clear much of the $540 trillion (£428 trillion) nexus of derivatives are themselves vulnerable to failure in times of extreme stress.

This is a worry looming ever larger as rising US interest rates expose the weak links in global debt markets.

The Bank for International Settlements (BIS) said in its quarterly report that the CCPs could cause “a destabilising feedback loop, amplifying stress.”

Full article on Daily Telegraph

 

CHRISTMAS SCHEDULE

We will be closed from 24th of December (next Monday), and reopen again on the 2nd of January (Wednesday). Our last trading day will be on the 21st of December (this Friday) and insured deliveries will begin again in the first week of January 2019.

We wish all our subscribers & clients a Happy Christmas and a Healthy & Wealthy 2019

 


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News and Commentary

Gold ticks up as dollar stays under pressure ahead of Fed meeting (CNBC.com)

Gold prices steady in run-up to Fed meeting (Reuters.com)

Gold gains as dollar, stocks slide; markets eye Fed (Reuters.com)

U.S. Stocks Sink Further on Health, Tech Retreat (Bloomberg.com)

Trump makes last-ditch effort to sway Fed with ‘take the victory’ tweet (MarketWatch.com)

Treasury yields slip amid lingering growth slowdown fears; Fed meeting in focus (CNBC.com)


Source: Bloomberg

Gold Becomes Fourth-Quarter Standout as Demand Surges (WSJ.com)

Indians Are Buying Gold for as Little as One Cent (Bloomberg.com)

The last key death cross is poised to engulf the stock market (MarketWatch.com)

It¹s official: the Federal Reserve is insolvent (SovereignMan.com)

This Is A Bear Market – Stocks Slump After Gundlach Unleashes Truth-Bombs On CNBC (ZeroHedge.com)

Bond Market Has Frozen: For The First Month Since 2008, Not A Single Junk Bond Prices (ZeroHedge.com)

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Gold Prices (LBMA PM)

17 Dec: USD 1,239.10, GBP 982.61 & EUR 1,093.13 per ounce
14 Dec: USD 1,239.15, GBP 983.39 & EUR 1,096.90 per ounce
13 Dec: USD 1,244.45, GBP 982.87 & EUR 1,093.62 per ounce
12 Dec: USD 1,244.75, GBP 993.31 & EUR 1,098.24 per ounce
11 Dec: USD 1,248.25, GBP 988.99 & EUR 1,096.59 per ounce
10 Dec: USD 1,246.80, GBP 980.61 & EUR 1,092.57 per ounce

Silver Prices (LBMA)

17 Dec: USD 14.60, GBP 11.55 & EUR 12.86 per ounce
14 Dec: USD 14.58, GBP 11.61 & EUR 12.92 per ounce
13 Dec: USD 14.68, GBP 11.60 & EUR 12.90 per ounce
12 Dec: USD 14.66, GBP 11.68 & EUR 12.93 per ounce
11 Dec: USD 14.64, GBP 11.62 & EUR 12.85 per ounce
10 Dec: USD 14.53, GBP 11.48 & EUR 12.73 per ounce


Recent Market Updates

– Gold Flowing From West To East and Now To Goldman Sachs
– Brexit Risk Sees Gold Rise To Test EUR 1,100 Per Ounce
– Yellen Warns Another Financial Crisis Is Brewing
– Gold Krugerrand Coin Worth $1,200 Donated To Charity Again
– EU Recession Imminent – Euro Disunion as Brexit, Italy and End of QE Loom
– Gold and Silver Gained 2% and 3% Last Week While Stocks Dropped Nearly 5%
– Irish Central Bank Refuses To Discuss Gold Reserves In Bank of England Vaults
– “Fake Markets” To Lead to Global Financial Crisis? – Goldnomics Podcast
– Gold Is “Coiled” and Looks Set To Surge Like Natural Gas — Bloomberg Intelligence

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Mark O'Byrne
Executive Director

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