September Starts With A Swoon After Quietest August In Over 50 Years

What the markets increasingly feel like…

China rebounded overnight with a miraculous liftathon as the afternoon session started…

European stocks were mixed with Italy stronger and Germany, France weaker…

After the quietest August in 50 years, US equities started September weak…

As Bloomberg notes, despite the negative headlines, from an escalation in trade tensions to emerging-market turmoil, peace prevailed, with the S&P 500 Index never swinging more than 0.8 percent on any given day, marking the calmest August by this measure since 1967.

US equities opened weak, ramped as always into the European close, faded again to the lows of the day before – for no news-driven reason at all – ramped back higher so that The Dow erased its losses… Despite desperate machines buying the close, by the bell Trannies were the only ones who managed to hold gains as Small Caps underperformed…

Futures show the difference between a day when the algos are playing and not playing…

Nike was the Dow’s worst-performer after its Kaepernick decision…

 

Amazon joined Apple in the trillion-dollar-market-cap club…

 

As Amazon soared, Tesla stock tumbled to three-month lows and bonds hit record low as Mercedes unveiled its E-SUV…

 

While stocks were down, bonds were also sold with Treasury yields 3-5bps higher…

 

30Y Yield extended its rise above 3.00% – back to unch from the start of August…

 

The Dollar was flat yesterday but rallied overnight, sliding lower through the US day session…

 

Offshore Yuan leaked lower…

 

Emerging Market currencies tumbled once again, extending yesterday’s losses…

September so far…

 

The South African Rand suffered its biggest drop since Nov 2016 (US election) after GDP disappointed, signaling the nation is back in recession…

 

Cryptos are notably higher since Friday’s close with Bitcoin Cash soaring over 17% (only Ripple is down among the majors)…

 

Bitcoin is holding gains back above $7000

 

Dollar gains sent Copper and Silver lower but WTI ignored it until comments from Iran’s Rouhani sparked a selloff…

 

Gold futures limped back below $1200…

 

WTI tagged $71 then began to slide, not helped by Iran’s production proclamations…

 

Finally, we note that Long/Short funds have never been more levered long to the S&P 500 than now…

And it’s all about fun-durr-mentals… hard data continues to slump as ‘soft’ survey data (today’s ISM completely opposite to today’s PMI) rises…

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