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Bernanke Stock-Boost Busted, Bonds Best Bid

Tyler Durden's picture




 

Despite the best efforts to squeeze shorts from the European close (end of POMO), the afternoon session punctuated by Fed's Fisher notable comments pushed stocks back lower with the S&P joining the Dow in the all-FOMC-gains-gone club. Financials and Materials  (-1.5% from FOMC) are the worst performers since Bernanke did not say "Taper" and while stocks have given it all back, bonds remain at their highs (in price) and lows (in yield) from that un-announcement. Treasury yields dropped 2-3bps more today (still down 15-20bps depending on maturity) as growth hopes fade. JPY strength was trumped by EUR weakness today which pushed the USD higher from overnight opening lows (from China PMI and Merkel) but by the close the USD was unch. Gold and silver were holding positive until Fisher's comments and they slid to -0.5% or so. WTI dropped 1.2% to $103.50. The S&P had its 3rd down day in a row for the first time in 5 weeks (as momo names join the financials among the leaders lagging).

 

AAPL saved the Nasdaq

 

But the S&P and the Dow have given up all their FOMC gains...

 

and Financials and Materials (the most sensitive to Fed money printing) have given the most back... and homebuilders are down 5.5% from theor post-FOMC highs

 

The short-squeeze effort saved some damage but Fisher's comments marked the turn...

 

Richard Fisher's comments appeared to be the crucial inflection point for some markets (but equities tried theur best to end green the FOMC)...

 

Away from that the USD gained from the open (to close unch)...

 

And Treasury yields are heading back to their lows post-FOMC...

 

 

Charts: Bloomberg

 

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