Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

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Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

“My name is Coronavirus… and I remember everything”

AsiaPac stocks were not pretty overnight as Coronavirus contagion fears spread (Hong Kong was worst)…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

European markets were punished out of the gate also on the same fears, but DAX managed to get back to close extremely minimally higher…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

US markets were red, despite the machines best efforts to BTFD. Between Boeing’s delay effects and Coronavirus headlines, Transports were hit hardest…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

 

Boeing knocked 100-plus points off the Dow…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

 

While the broader market – and travel, lodging, and gaming stocks – were all hit hard on the coronavirus headlines…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

…flu-shot makers soared with NNVC up over 300% at one point…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Defensives dominated trading today as Cyclicals sank…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Momo continues to soar in 2020…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Bonds and stocks remain dramatically decoupled on the year…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Treasury yields were down hard today with the long-end outperforming…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

30Y Yields tumbled back near Soleimani is dead headline spike lows…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Long Bond Futs prices are back at their highest since early December…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

The yield curve flattened back towards 2020 lows…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

The Dollar legged higher during the US session, holding its gains on the week…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Yuan tumbled overnight…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Cryptos were flat-ish for the second day in a row…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Commodities were all broadly lower today with copper leading the way lower (China growth proxy), but Silver was hit for no good reason…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Palladium plunged around 6% today, its biggest daily drop since March 2019…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

Gold bounced back higher after testing below $1550..

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Finally, we note that there are some notable anomalies in the VIX term structure that could become problematic in the last few days. As contracts expire tomorrow, so the very steep term structure (fueling lots of short-vol-tilted carry trades) will flatten…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

And thanks to the Super Tuesday risks, could lead to problems for those expecting the curve to roll-down faster…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg

A “potential unclenching” in the U.S. benchmark equity index may await if these options aren’t rolled, Nomura Securities strategist Charlie McElligott said.

But of course, there’s still a little further to run before this shitshow all falls apart…

Global Stocks Sink On Wuhan Worries, Bonds Bid Back To 2020 Highs

Source: Bloomberg


Tyler Durden

Tue, 01/21/2020 – 16:01

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