Markets ‘Feel The Bern’ As Global Growth Scare Accelerates

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Markets ‘Feel The Bern’ As Global Growth Scare Accelerates

A manufacturing catacl-ism, a disappointing ADP jobs print, NY PMI plunges, crude builds (demand?), and fears about Bernie’s health sparking panic over Warren’s lead. But Fed’s Williams says they have the tools (well in one way he might be right there) and they promise to use them earlier this time… The (stock) market didn’t seem to buy it (even as the dollar and long bond ended unchanged)…

Although the market’s demand for rate-cuts in October is soaring…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

China remains closed but US-based China ETF remains lower on the week…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Europe was a bloodbath with UK’s FTSE 100 crashed today, dropping 3.2% – the most since Jan 2016…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

US markets cratered today led by Trannies…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Trannies are down 5% so far this week…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

The Dow is down 1000 points from the catacl-ism…Some have argued today’s drop accelerated when Bernie Sanders headlines hit…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Sparking this…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

And all the major US equity indices have broken below key technical levels… (Russell 2000

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Both Defensives and Cyclicals were hit today, but Cyclicals considerably worse…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

“Most Shorted” stocks fell for the 10th day in the last 12 after a huge squeeze to start September…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

VIX topped 21 intraday and the term structure fell back into inversion…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Credit markets are starting to crack wider…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Treasury yields were down across the curve today but there was a very notable outperformance at the short-end (2Y -6bps, 30Y -0.5bps)

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

10Y Yields fell back below 1.60%…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

The yield curve (3m10Y) remains inverted…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

And the market shifted more dovishly – now pricing in 1.37 rate cuts by end 2019…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

The Dollar was very modestly lower on the day, mimiccing yesterday’s rollercoaster ride…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Amid all the chaos, cryptos were ‘stable’…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Precious metals were bid today, back into the green for the week as oil tumbled after a big surprise crude build…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Gold futures surged back above $1500…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

WTI tumbled to near 2-month lows – unchanged in almost 4 months – after a surprise crude build today, erasing all the Saudi attack gains…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Gold topped stocks once again year-to-date…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Finally, after being buoyed by ‘use-it-or-lose-it’ spending from the US in September, global macro data is collapsing fast…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

Source: Bloomberg

Why ISM Manufacturing matters…

Markets 'Feel The Bern' As Global Growth Scare Accelerates

And, if you want to see what propaganda charted looks like, here it is…

Just keep buying stuff ‘Murica!!


Tyler Durden

Wed, 10/02/2019 – 16:00

Markets 'Feel The Bern' As Global Growth Scare Accelerates

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