US Bonds Up, US Stocks Up, US Dollar Up… Everything is awesome!
Here’s why:
- New anti-establishment Italian government? Check.
- New anti-establishment, socialist Spanish government? Check.
- Trade war between the US and Europe, Mexico, & Canada? Check.
- Deutsche Bank (most systemically risky bank in the world at one point) downgraded to a B-handle? Check.
- Fed Tightening as rate-hike odds rise after good jobs data trumps EU risk? Check.
The holiday-shortened week ended with Nasdaq and Small Caps outperforming, but The Dow lower…
On the day, stocks outperformed post-Trump’s tweet on payrolls, bonds and gold ended lower…
EU banks blodbath’d…
The big US banks ended the week in the red…
Big Tech soared…
This won’t end well…
Another big short-squeeze this week…
Credit markets rallied back from extreme after Italy but remain notably decoupled from equity risks…
Treasury yields all ended lower on the shortened week, with the long-end outperforming…though a massive intra-week range after Italy’s chaos…
The yield curve flattened for the 5th time in six weeks to new 11 year flats…
Oh and ignore this…
The Dollar Index managed to hold on to gains to make it 7 weeks in a row of increases…(though the last two weeks have been very rangebound)
Emerging Markets FX erased last week’s dead cat bounce gains…
Bitcoin, Litecoin, and Ripple ended the week unchanged after some notable volatility but Ethereum and Bitcoin Cash underperformed…
Ugly week for WTI as Copper outperformed…
WTI closed back below $66 for the first time in over 6 weeks…
Gold pushed back below $1300 into today’s close…
And finally, there’s this – probably nothing though…
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