Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

stocks bonds manage modest gains despite global currency carnage

The Turkish Lira today…

Chinese stocks had an ugly start to the week…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage
 

European stocks were not much better (not helped by the collapse in German factory orders)

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

And while US equity futures were down in the pre-market, the cash open prompted the ubiquitous buying panic…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Trannies, Small Caps, and Nasdaq outperformed on the day…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

As yet another short squeeze was engineered…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

But as we noted earlier, breadth in the rally has collapsed…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

FANG stocks mounted valiant rebound today thanks in large part to Facebook’s 4% pop…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

VIX closed at lowest since Jan 26th…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Despite Jamie Dimon’s fearmongering over 5% rates, yields actually fell on the day

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

10Y Yields fell to near 3-week lows…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

The biggest action today was in the FX markets however.

The dollar ended the day higher…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Emerging Market FX dropped to 3-week lows… while the Turkish Lira dominated, the Rand, Ruble, and Colombian Peso, and Brazilian Real were all hit today…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

The Loonie slammed lower overnight on the Saudi sun headlines (but rebounded after US equity markets opened)…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

However, The Turkish Lira was clubbed like a baby seal as a central bank dollar liquidity boost utterly failed sending Erdogan’s currency crashing to new record lows…NOTE – today was a 22 big figure crash (biggest absolute drop ever)!! The 2nd worst percentage change day for the Lira since Lehman.

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Cable slumped back below 1.30 – to 11-month lows – after hard brexit headlines hit…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

And finally, offshore Yuan manage to unwind most of the kneejerk gains from Friday’s PBOC forward market intervention…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Cryptos are off to a weak start to the week…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

WTI managed to hold on to gains ahead of the Iranian sanctions but copper led the commodity slide with PMs weaker again…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Copper diverging lower from gold signals another leg lower in Treasury yields…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Which could be a problem for the record shorts…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

And finally, as disappointing as the economic data becomes, high-flying tech stocks remain impervious…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

Bonus Chart: Considering Jan 22nd 2018 as the start of Trump’s fight with China (when he imposed safeguard tariffs on solar panels and washing machines), the following chart makes it pretty clear who is winning the trade war…

Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage
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