Stocks & Bond Yields Tumble As China Trade Deal Hope Fades
The so-called “resilience” of US equities overnight as they shrugged off the Washington Democracy Bill vote and the China retaliation threat is more a signal of ignorance (or total complacency) as every negative trade headline was met with a sudden wall of bids to try and get back to even…
As US sources told Reuters that the deal may be delayed, the market began to drop the odds of a trade deal (albeit modestly)
Source: Bloomberg
This was just a fleshwound though for the algos who know only buying matters now…
Chinese stocks faded overnight (as they should rationally)…
Source: Bloomberg
European stocks started ugly but were bid all day…
Source: Bloomberg
US equities were all lower on the day (Trannies worst) but note the two BTFD efforts…
The Dow is down two days in a row, and less than 1%, but that is still the biggest such drop in 6 weeks!!
Source: Bloomberg
The VIX term structure continues to steepen dramatically…
Source: Bloomberg
Momo has erased almost all the month’s losses (as bond yields have tumbled)…
Source: Bloomberg
Treasury yields were all lower once again today with the long-end notably outperforming…
Source: Bloomberg
With 10Y back below the key 1.75% level…
Source: Bloomberg
The yield continues to flatten dramatically back towards inversion…
Source: Bloomberg
The dollar rallied for the 2nd day in a row…
Source: Bloomberg
Offshore Yuan fell to three-week lows…
Source: Bloomberg
Cryptos ambled modestly lower today…
Source: Bloomberg
Bitcoin was choppy intraday but ended marginally lower…
Source: Bloomberg
Gold, Silver, and Copper were relatively flat today but oil prices surged (despite the odds of a trade deal fading and a build in crude stocks)….
Source: Bloomberg
But the rebound was purely technical in nature…
And finally, whatever you do, don’t worry about there being a recession anytime soon, the ‘experts’ know better…
And this was notable, Warren has collapsed in the betting to equal Biden as Buttigieg is surging…
Source: Bloomberg
Who’s right – the FX markets or the equity markets?
Source: Bloomberg
Tyler Durden
Wed, 11/20/2019 – 16:00
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