This seemed to appropriately reflect the last few weeks of global market ‘turmoil’…
China stocks trod water overnight…
European markets rallied though with Italy and Brexit hope…
US equities rallied on the day, peaking around the European close then dumping into the US close with Dow, S&P giving up most of the day’s gains…
The on-and-off again sell-off in both crude and stocks since the beginning of October met some holiday relief amid a bounce in risk assets after MNI reported the Fed is considering ending a cycle of interest rate hikes as early as the spring. Optimism also rose for a positive meeting between President Trump and China’s President Xi after the administration decided to exclude White House trade adviser Peter Navarro from the meeting.
A slightly different angle shows that US equity futures ramped to yesterday’s cash session highs and then faded…
As one would expect on the day before Thanksgiving, equity volumes were well below average…
And here’s what the corporate bond volume as reported by Trace looks like compared to the average at time of day
Of course, the US equity gains were all driven by a short-squeeze, but that ended when Europe closed…
FANG stocks managed gains but it was an unimpressive bounce…
Bank stocks got hit hard into the close…
Stocks caught down to bonds into the close…
High yield bonds record losing streak is over…
But notably – after the initial opening dump, both HY and IG spread widened and there was no bid for IG credit even as VIX slumped…
Just as we saw bonds sell off with stocks selling off yesterday, today saw bonds bid as stocks rallied…
The Dollar limped back lower after tagging Friday’s highs…
Offshore Yuan rallied back into the green for the week…
Most cryptos managed gains on the day but Bitcoin Cash continued to slump…
The dollar weakness lifted PMs and copper…
WTI Crude bounced off $54 after a surprise crude build, pumped and dumped, but ended the day green, offering more hope that the worst is over…
Despite gold’s lackluster week in USD, it is surging against the Yuan…
Finally, we give thanks for Gluskin Sheff’s David Rosenberg:
The clowns on TV rant about the great macro backdrop and alluring valuations. No mention of liquidity as if they don’t know this is the fuel for risk assets. Someone should tell them that the global monetary base began to contract last March and is now running at a -7% YoY rate.
— David Rosenberg (@EconguyRosie) November 21, 2018
And then there’s this…
And finally, if you needed something else to worry above, the fate of the world’s developed stock markets may be more dependent than ever on U.S. shares.
This year, the U.S. weight in the MSCI World Index has risen as much as 3.6 percentage points to 62.8 percent, according to data compiled by Bloomberg.
Happy Thanksgiving everyone.
via RSS https://ift.tt/2KqTcZ5 Tyler Durden