So much for the “all is well” signal from yesterday’s markets that we pointed out had the stink of a dead-cat-bounce about it…
Big trouble in tech china combined with a major QT redemption day sparked carnage across global markets.
So where to start…
Despite constant imploring that there is no contagion, Commodities (blue), EM FX (orange), Global Systemic Banks (red), World Stocks (grey), & FANG/TATS (pink) all got clubbed like a baby seal…
The only bid in the world was for bonds and bitcoin…
Here are the details.
STOCKS
Global Stocks tumbled to 6-week lows and broke below all key moving averages…
China stocks were a bloodbath after Tencent earnings crushed global hopes…
And while FANGs fell today, TATS (Tencent, Alibaba, Taiwan Semi, Samsung) were crushed…
European stocks suffered as Turkey tensions remain…with all major indices now red on the year…
And EU banking stress sent stocks into a bear market…
Global bank stocks are down 23% from their highs…
EM Stocks entered a bear market…
US Futures show yesterday’s dead cat bounce best and the instant reaction to Tencent’s earnings… of course the afternoon (with the rest of the world shut) saw the machines ramp stocks on the back of a Turkey headline that did nothing for the lira…
Trannies managed gains intraday but faded into the close, Small Caps and Nasdaq were worst…
Nasdaq bounced off its 50DMA…
The Dow also bounced too…
VIX spiked to almost 17 intraday before pulling back to 15.00…
Tesla tumbled after SEC subpoeana headlines (among other things)…
BONDS
Bunds, JGBs, and USTs were all bid…
The entire UST curve rolled over, with yields now lower on the week…
10Y Treasury yields tumbled to one-month lows…
The UST yield curve plunged back to cycle lows today…
And while the Lira rebounded today, Turkish bonds did not…
CURRENCIES
The dollar index hit a new cycle high…
Back to the same level as the day of the Trump election…
The Turkish Lira bounced (with 3 impulses) but was unable to sustain any trend…
In EM FX, The Rand, Ruble, Real, and all the pesos were pummelled…
Ugly day…
The Argentine Peso was ugly early on but after 3 auctions by CBRA of $781 million (offered over $1.5 billion – “funding secured” by The IMF), they managed to stabilize it, barely…
But it was the Yuan that everyone was watching…
Crashing the Renminbi awfully close to 7.00…
Finally, as chaos spread across global currencies, cryptos rallied (for a change)…
With Bitcoin surging back above $6500…
COMMODITIES
The dollar surge hammered commodities…
Gold and silver were monkeyhammered…
Silver hit a 9 year low on very heavy volume…
Silver at its weakest to gold since Feb 2016…
But Gold futures were panic-traded in Turkey…
Industrial metals were crushed…
Dr. Copper entered a bear market… (NOTE we forget about Copper’s PhD in economics when it collapses)…
Finally, before everyone starts on with the “yeah but the US economy is awesome” bullshit… it’s not…
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