Stocks Slammed Most In 6 Weeks On Yen-Carry Collapse

Tyler Durden's picture

Copper's China-credit-contraction-driven crash continues as the metal drops to fresh 5-year lows today (on par with Lehman and the US downgrade collapses). Japanese stocks are down over 1000 points from their post-Putin highs. Russian stocks are plunging, Germany's (and Swiss) bonds are surging (as is gold) and European equity and credit markets are in free-fall. But apart from that... Finally we saw the world's angst spill into Yen-carry trades (USDJPY was spanked today - almost biggest drop in 6 months). US equities plunged tick-for-tick with USDJPY (S&P's biggest drop in 6 weeks and red for 2014); Treasury yields were crushed 9-10bps from intraday highs (biggest drop in 2 months); credit spreads banged wider; gold jumped to six-month highs; and EUR weakness (post-Draghi) ramped the USD back near unchanged on the week. VIX was a one-way street higher all day (biggest low-to-high run in 6 weeks) to 6-week highs.

CNBC clarifies "you can't find any single reason for this selloff" - nope, none at all...

But perhaps this is more realistic (h/t @stalingrad_Poor):

JPY-carry collapse sent stocks reeling:

 

Only Trannies remain green from Putin's press conference (despite a late-day ramp effort) - this is the 4th down-day in a row for the Dow

 

Year-to-date, the S&P joins the Dow in the red once again...

 

Financials (trumpeted as the leader of the next leg higher in stocks) are back to unchanged  YTD with Utes leading the way...

 

VIX was a one-way street higher with 2 efforts to ramp (including the ubiquitous late-day ramp)

 

And bonds recovered most of their post-Putin (and issuance rate-lock biased) losses...

 

Credit markets continue to be ugly here but stocks playing catch down quickly...

 

Demand for safe havens is dominating growth hope this week...

 

FX markets were a mess - AUD spiked on Aussie jobs data (but recovered the move in the US session), JPY rallied dramatically, and EUR dumped on Draghi jawboning...

 

Copper's drop is starting to look a lot like Lehman... (copper intrday clung to yesterday's intrday lows but closed at lowest levels since mid-2009)

 

And Japan is getting spanked... (as JPY drops most in 6 months)

 

 

Charts: Bloomberg

Bonus Chart: The World Stock Market's Equity Price-to-Central Bank Balance Sheet multiple remains very stable (for now)... (h/t @Not_Jim_Cramer)