It's China Again

Asian markets were mediocre, some +.2, some -.2% it was the US futures that were hit overnight when China's new Premier Li Keqiang made a speech that was published in full late that said adding extra stimulus would be more difficult since printing new money would cause inflation. 

So here we are with the same catalyst that started the 10/18 weakness that developed quickly after 2 p.m. on an Op-Ex Friday. I don't know of any Reverse repos withheld, but I'm going to triple check. 

Right around 3 a.m. Futures took a dive.

ES 1 min

Essentially I suspect the reason for the choppy market and the signals for such has been based on the fact this question of Chinese tightening had yet to be answered, now we know what the new Premier thinks, it's different than what he use to think as bottom line growth was his policy so it came as a surprise, but I think the PBoC's new policy as of recent is not totally separate from the new Premier's concern over inflation and I don't think either are separate from F_E_D and especially BOJ policy.