China & Eurozone connection…

Errrrrttt…That was the sound of tightening; if I knew Chinese, I would give you the translation. I guess there’s no need for that, as the markets seem to be translating it just fine this morning.

China surprised the markets with an announcement they would tighten reserve requirements yet again in an effort to reign in some bubble-iscious-ness thanks to excess credit pumped into the hermetically sealed kingdom, i.e. capital controls, among other types. The dollar, gold, oil, stocks, and the bonds played along with the script…with buck moving higher, while the rest of the pack went south.