Blood bath overnight in Japanese equities will take the spotlight off of grains. Corn down 2, beans mixed and wheat up 4.
Bernanke looks to have popped the bubble in the short term. China also showing a few dents in the armour with their manufacturing unexpectedly shrinking.
I am not so sure that anything in the short term has changed significantly but it doesn't matter what I think - it just matters what the market thinks. FOMC minutes seem to suggest that talk of tapering sooner rather than later has begun. But, we need to see signs of good economic growth. I will argue that we have a very shaky economy that still needs to improve A LOT before the FED can stop what they have begun. 7.5% unemployment. A record 48 million people on food stamps. Housing has bottomed but is nowhere near levels seen in 2005. This is officially the longest, slowest recovery we have ever had. The patient is still pretty sick.
We will need to digest the markets yearly gains as well as the FED speak and see how we come out on the other side. In the mean time fasten your seatbelts.
As for the markets now, equities are getting hit after a 7% selloff in Japan. The 10 year yield is at that famous 2.00% level. Gold has rebounded on equity fears and is up $22. The dollar is easier that may help give the commodities a bit of a bid today.