Putin "Blink" 2.0 - The Algos React

Tyler Durden's picture

It's deja vu all over again in markets this morning as the fact that Vladmiti Putin did not use the words "we're gonna nuke 'em all" and, just as he did 2 weeks ago, confirmed "Russia would not seek confrontation in West and East" and did not announce sanctions (which last time ended with the referendum and annexation of Crimea); has left algos believing that the world is calm once again and the buying spree can continue. Stocks, thanks to the helping momo-sparking hand of EURJPY, have jerked another 12 points higher on the news; gold and silver are limping lower; there is dollar weakness (EUR strength); and Treasury yields are up 3-4bps. However, Russian stocks and the Ruble continue to strengthen (in a nothing can hurt us now manner).

The instant reaction...

 

Which has lifted the S&P to pre-crimea levels...

 

And Gold, Bonds, and the Ruble are moving back to pre-Putin levels...

 

Charts: Bloomberg