Global Manufacturing massacre catches up to ‘Murica and stocks and bond yields tumble (after markets were seemingly surprised that Trump and Xi shot tariffs at each other – as they said they would – over the weekend)…
China was largely flat overnight, after a strong Monday…
Source: Bloomberg
Europe slipped into the red overnight with only Italy holding Monday’s gains…
Source: Bloomberg
On the day, all US major indices were red (with Small Caps and Trannies underperforming)…
NOTE – the initial down opening was weakness from trade headlines and the second leg down was the ISM manufacturing contraction.
Stocks have erased all of last week’s “fake” phone call with China spike and are back in the red from Trump’s tariff tantrum
All the major US equity indices are back below their 100DMAs (Small Caps < 200DMA)...
A Quintuple Top?
Cyclicals dominated the market moves today…
Source: Bloomberg
The market implied odds of a US-China trade deal have tumbled back towards zero…
Source: Bloomberg
Are bonds and stocks starting to recouple?
Source: Bloomberg
Treasury yields tumbled on the day (with the short-end outperforming)…
Source: Bloomberg
30Y Yields briefly topped 2.00% overnight but rejected that quickly to end the day notably lower…
Source: Bloomberg
The yield curve (2s10s) steepened back out of inversion (but of course 3m10Y – the more accurate indicator – remains dramatically inverted)…
Source: Bloomberg
After 6 straight days higher, the dollar index slipped lower today…
Source: Bloomberg
Yuan rallied inatrday, erasing last night’s tumble…
Source: Bloomberg
EUR rallied after ECB’s Mueller said there was no strong case to resume bond-buying…
Source: Bloomberg
Cable tumbled overnight (below $1.20 for first time since 2017) then rallied back into the green as BoJo lost his govt majority on Lee’s defection…
Source: Bloomberg
Cryptos rallied today, extending yesterday’s gains, helped by news that a Bitcoin ETF is finally coming…
Source: Bloomberg
With Bitcoin spiking back up to almost $10,800…
Source: Bloomberg
Very mixed picture in commodity-land as crude and copper dropped and PMs popped (led by Silver)…
Source: Bloomberg
Spot gold prices spiked up to $1550…
Source: Bloomberg
But it was silver that really exploded (2nd biggest spike since July 2016, Brexit vote)…
Source: Bloomberg
Crashing the gold/silver ration back to its lowest since Aug 2018…
Source: Bloomberg
WTI Crude plunged 3% intraday, back below $54, will it pull back into the recent range?
Finally, we note that it’s not like the ISM Manufacturing signal should have been unexpected as Trucking indicators and Treasury yields have been signaling this was imminent for weeks…
Source: Bloomberg
And as Bloomberg’s Eddie van der Walt notes, the copper/gold ratio is extending the year’s declines, turning its back on the Trump-trade era and now focusing lingering economic risks, with 2016 lows coming into play.
Source: Bloomberg
It now takes only 3.6 ounces of gold to buy a ton of copper, that’s down from more than 5 ounces earlier this year. Changes in the ratio between the two metals are a useful barometer of investor risk appetite, as the one acts as a haven and the other is an input into industrial applications.
via ZeroHedge News https://ift.tt/2LgSkYY Tyler Durden