Well that was quite a month…
High(Low)lights…
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China’s Renminbi suffered its biggest monthly loss since 1994
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EM FX tumbled to a record low, worst month in a year
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US Treasury yields plunged in August by most since Sept 2011 (to record low yields at the long-end)
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US Yield Curve flattened most in August since Jan 2016 (to its flattest since 2007)
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Bund yields tumbled 26bps to record lows – the biggest monthly drop since June 2016 (Brexit vote)
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Treasury ‘VIX’ spiked most in August since May 2009
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Iron Ore Futures (Singapore) suffered their worst month ever…
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Gold has the best August dollar gains since Feb 2016
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Silver had best August percentage gain since June 2016 (Brexit vote)
Stocks
US and Chinese stocks are surprisingly aligned YTD (both up around 16/17%) with Europe lagging (+13%)…
Source: Bloomberg
But on the month, all major regions saw stocks lose a similar 1.5 to 2.0%…
Source: Bloomberg
US equities ended the month lower with Trannies and Small Caps worst, Dow and S&P the least worst…
Source: Bloomberg
Only The Dow Industrials and Transports are green from last week’s Trump tantrum (S&P unch)…
NOTE – last minute panic-buying
Defensives dominated the month…
Source: Bloomberg
The Dow managed to get back above its 100DMA but faded into it at the close today…
Buybacks saved stocks numerous times this month…
Source: Bloomberg
And while short-squeezes were used to keep stocks afloat, their surges were weaker and weaker…
Source: Bloomberg
And… as @TaviCosta notes, another one bites the dust. This beauty was the #2 performer in the S&P 500 since March of ’09! Just broke down from multi-year support line as well.
Source: Bloomberg
Bonds
Treasury yields utterly collapsed in August (30Y was down over 60bps at its lowest)… The biggest monthly drop in the long-bond’s yields since Sept 2011
Source: Bloomberg
30Y ended the week below 2.00% for the first time ever…
Source: Bloomberg
A bloodbath for bond bears…
Source: Bloomberg
And the yield curve collapsed (3m10Y) holding its inversion for
Source: Bloomberg
And 2s10s closed the week inverted (biggest 2-month flattening since Jan 2015)…
Source: Bloomberg
And before we leave bondland, we note that 30% of global IG corporate debt is now trading at a negative yield!!
Source: Bloomberg
FX
The Dollar rallied in August helped by Yuan weakness slightly offset by Yen strength…
Source: Bloomberg
The broad trade-weighted dollar is at an all-time record high…
Source: Bloomberg
EURUSD tumbled back below 1.10 for the first time since May 2017
Source: Bloomberg
Emerging Market FX tumbled to record lows…
Source: Bloomberg
Cryptos ended in the red for the month after yesterday’s plunge (Litecoin the biggest loser)…
Source: Bloomberg
With Bitcoin back below $10k…
Source: Bloomberg
Commodities
Silver’s best month since the Brexit vote (June 2016) and Gold rallied but crude and copper were clubbed like baby seals…
Source: Bloomberg
Cotton fell for a fifth straight month in August, the worst such run in more than 14 years, as slowing demand feeds expectations for a global surplus.
Iron Ore Futures (Singapore) suffered their worst month ever…
Source: Bloomberg
Silver led the precious metals but Platinum had a big month (up most since Jan 2017)
Source: Bloomberg
Gold ended the week unchanged but well up from Trump’s tantrum…
But Silver dramatically outperformed (up for the 7th week of the last 8)…
Source: Bloomberg
With Silver at its highest since April 2017
Source: Bloomberg
Gold continues to track the surge in negative-yielding debt volumes almost perfectly…
Source: Bloomberg
Finally, bonds and stocks had a very different month, you decide which you trust more…
Source: Bloomberg
Will it be 1998 or 2013?
Source: Bloomberg
While August saw a flood into safe-havens like bond and bullion, volatilities are notably divergent in Treasuries and Gold relative to other asset classes…
Source: Bloomberg
via ZeroHedge News https://ift.tt/2HAUDUG Tyler Durden