OVERNIGHT

Forget risk on, risk off. The new meme is doubt in, faith out as the Japanese yen continued its climb against the U.S. dollar making a new18-month high Tuesday and investors lose confidence in central banks and their ability to create growth via monetary policy.

If you're a gold investor you see the handwriting clearly. If you're not don't wait too long to put a net under your purchasing power. The debasement of fiat currencies is on. Gold and silver have been two of the better investment in 2016 to date.

To add to the problem China's latest PMI number, minus any attempted MSM spin, continues what has been a bleak story for 14 long months as demand stagnated in April and further job losses mounted. The Caixen purchasing managers index dropped in April to 49.4, below the neutral 50 level indicating further global weakness since China represents the second largest global economy.

All of this wasn't lost on equity investors. Reuters reported that markets in Hong Kong and Taiwan led regional losers down after the report. One of the few bright spot was Australia where the market was up 0.8% ahead the the central bank meeting where economists were not expecting any rate changes. But should one happen it would further add to investor fears about global growth.

In breaking news, RBA cut it's rate 25 basis points to 1.75%. The fallout to investor confidence remains to be seen, but is one investors want to keep an eye on.

In a side bit, noted by Reuters, "The U.S. Treasury put Japan on a new currency monitoring list with four other countries that have large trade surpluses with the United States, seen making it harder for Tokyo to intervene in the markets to stem the yen's gains." Shades of a trade war.