“Everyone Wins In A Trade War”? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

“No one wins a trade war” they said… Well for now, everyone is winning – US, Chinese, and European stocks are up; the dollar is stronger; and the long-bond is up…

[youtube https://www.youtube.com/watch?v=qhXjcZdk5QQ]

Bonds and Stocks are bid post-Trade-War-Tantrum…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

For now Russia is winning the trade war (if stock markets matter)

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Chinese Stocks love Trade Wars…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

European Stocks love Trade Wars (apart from Spain and Italy)…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

US Stocks love Trade Wars…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Bloomberg offers a few explanations as to why the market seems unfazed by the trade war:

1. Investors are betting that cooler heads will prevail

2. The direct impact of tariffs is not enough to have drastic economic consequences. We are talking about 10% taxes on $200 billion imports in a $19 trillion economy. There will be winners and losers, but the aggregate impact is small

3. Political uncertainty matters less than you think.

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

And while uncertainty soars, VIX tumbled…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

And then there’s this – ignorance is bliss…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

US equities had their best week in over a month as algos BTFTWD!! Small Caps ended the week red though…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

S&P managed to get above 2,800…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

5 opening short squeezes in a row…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Wells Fargo ended the week lower and Citi unchanged but the “blockbuster” earnings this morning left bank stocks red on the day…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Yet again bank stocks have collapsed relative to the market and reverted back to the slumping yield curve…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

An odd week for FANG stocks – lurch open on Monday morning and push to new record high – but Friday 13th spoiled the party…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Despite soaring stocks, the long-end of the bond curve ended unchanged…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

And the yield curve collapsed to a new cycle low…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

The yield curve collapse is accelerating…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

30Y Treasury yield ended with the lowest weekly close since January…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

The Dollar Index rallied solidly on the week…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

The Yuan slid lower on the week once again (5th week in a row) finding resistance on a rebound twice at the CNY Fix…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Cryptos had another ugly week after a good start last weekend…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

Commodities were all lower on the week…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

The worst week since February for Bloomberg’s Commodity Index but global stock markets don’t care…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

And finally, there’s this…

"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum
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