Gold in Q3: USD -4.5%, EUR -2.4%, GBP +1.5%, CHF +2.4%, CAD +4.6%

– Stocks face worst quarter since 2011 over fears for global economy
– Global economy concern as China slows down sharply
– Concern re Federal Reserve stewardship
– Increasing nervousness re U.S. earnings outlook
– Stock markets of the world’s ten largest economies are currently in red
– Gold rose 1.5% in GBP, 2.4% in Swiss franc and 4.6% in Canadian dollar
– Gold down 4.5% in USD while global stocks fall 5% to 13%
– Stocks remain overvalued and still opportunity to rebalance into gold

After the China Tremors of July-August, September rolled in with a roar of a veritable Bear.

All in, on a quarterly basis, S&P was down 8.2 percent, DJIA fell more than 8.7 percent and EuroStoxx 50 shed 12.9 percent. Only longer dated (5 years-plus) U.S. bonds and Japanese Yen have managed to wrestle out quarterly returns in excess of 1 percent.

Meanwhile, the CBOE Volatility Index (VIX), a popular measure of the implied volatility of S&P 500 index options, jumped 38.4 percent compared to the start of July.

Risk aversion once again became a major strategy play in 3Q.

The core drivers for the changed risk sentiment are global themes.

China – at the front of the financial news flow – continued to post weakening macroeconomic data. August marked an outright collapse in Composite PMI, down to 48.8 from 50.8 in July, marking the fastest contraction of output since February 2009. September manufacturing PMI came in at a miserably low 47.2, with Composite PMI falling to 48.0 signaling a rapid rate of economic growth deterioration for the second month in a row.

Chinese economy’s woes, however, are far from being contained. Ongoing deleveraging in the markets – cutting margin loans volumes, unwinding carry trades (including across broader Asian markets), and closing off risk-parity positions – all saw Shanghai Composite Index falling from the peak of 5,166 in mid-June to 3,038 at the end of September. As of September 29, total margin debt in Chinese stock makers stood at CNY921 billion, down more than 50 percent on peak attained in June (chart), but still well ahead of 3Q 2014 levels.

Read more on the GoldCore.com blog

IMPORTANT NEWS

Gold struggles near 2-week low after strong U.S. data – Reuters
S&P posts worst quarter since 2011 – Reuters
U.S. Stocks Have Worst Quarterly Rout in Four Years – Bloomberg
Glencore Rallies Most Ever After Company Reassures Investors – Bloomberg TV
Mitsui Posts Record Decline After Swiss Probe, Glencore Rout – Bloomberg

IMPORTANT ANALYSIS

IMF warns of new financial crisis if interest rates rise – The Guardian
America’s Manufacturers Got Crushed in September – Bloomberg TV
BofA Issues Dramatic Junk Bond Meltdown Warning: This “Train Wreck Is Accelerating” – Zero Hedge
Is The Fed Preparing For A “Controlled Demolition” Of The Market – Zero Hedge
Mitch Feierstein: Firms too big to fail before, like JPMorgan, are bigger now – Independent

Read more News & Commentary on GoldCore.com

Download 7 Key Allocated Storage Must Haves