Overheard everywhere today…
Emerging Market FX was where the headlines were today…
But stocks in China, Europe, and US all saw miraculous ramps as EM tumbled…
Obviously Turkey led the charge… CBRT desperately defended the 7.00 line in the sand for USDTRY..
We wonder just how much CBRT blew to hold that line today…
Turkish stocks were hammered until authorities banned short-selling and BIST-100 bounced…
But Turkey CDS soared to its highest since Oct 2008…
The South Africa Rand flash-crashed last night and then faded back after its rebound on idiosyncratic budget concerns and EM contagion anxiety…
Argentina’s Peso was pummeled, with a modest bounce after BCRA hiked rates 500bps to 45%!!
*ARGENTINA SAYS TURKEY SITUATION ADDED COMPLICATIONS
Brazilian Real plunged, signaling EM panic…
Colombian Peso was pounded… But ECHAVARRIA SAYS COP AT 3,000/USD IS OPTIMAL LEVEL
And while LatAm EM was weak, the Asian Dollar Index tumbled to 17-month lows…
EM FX caught down to EM Debt as EM Stocks are trying to ignore it…
China stocks were miraculously bid after the lunch break – after tumbling in early trading…
European stocks ended lower but were ramped on rumors (denied) that Pastor Brunson was to be released…
Italian bonds suffered…
Despite desperate efforts to reassure investors that Turkey doesn’t matter… US equities could not hold on to early gains as futures show…
Cash indices rolled lower as Europe closed then rallied back to unchanged…
For the first time in over a week, there was no short squeeze at the open…
European & US ‘VIX’ jumped…
Odd day for US VIX – opened at 50DMA, spiked to 100DMA, fell back to 200DMA…
Tesla’s farce continues with blog posts from Musk, denials and rumors about Saudi stakes… TSLA bonds were not buying it (or was buying that the company will be considerably more leveraged)…
FANG Stocks dumped at the open, then jumped and dumped…
Treasuries were bid overnight but sold off on the Brunson release rumors, ending the day approximately unchanged…
10Y Yields remain around BoJ rumor levels…
The Dollar Index spiked to its highest since June 2017 (up 3 days in a row)…
Offshore Yuan tumbled back towards cycle lows…
Cryptos tumbled today – as the dollar soared – with Ethereum worst (as Ethereum Classic maybe impacted markets)…
And while cryptos were whacked again today, Bitcoin is at 7-month highs in Turkey…
Dollar strength crushed commodities…
WTI tumbled to a $65 handle and 7-week lows… (OPEC lower demand forecast and Genscape signaled Cushing stocks building) – before ramping back higher…
And gold (in dollars) was unable to benefit from any safe-haven bid…dropping back below $1200…
Gold in Turkish Lira hit a record high…
But Gold in Yuan continues to be well ‘contained’…
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