Stocks Retrace Tax Bounce As Trump Raises Debt-Ceiling Doubts Overnight

Tyler Durden's picture

Stocks are rapidly erasing yesterday's "making strides on taxes" gains as Trump's government shutdown threats remind investors just how fragile this whole facade is. The 'risk-off' trade is evident everywhere with Treasury and Bund yields tumbling, gold up, and USDJPY sliding.

Bond yields are tumbling - erasing all of yesterday's losses - Gold is back at yesterday's highs, and the dollar is leaking lower...

 

As we noted earlier, yesterday, when stocks surged at the market open following Politico's report that Trump is unexpectedly "making strides" on tax reform, we warned that "it can all be wiped away as soon as tonight, when Trump will deliver a speech to his "base", in which he may promptly burn any of the goodwill he created with capital markets following his far more conventional Afghanistan speech last night." That's precisely what happened, because on Tuesday night, in another fiery campaign rally, Trump fiercely defended his response to violence in Charlottesville, made passing remarks from a teleprompter about the need for unity and inclusion before veering off-script to attack the news media, Democrats and even Republicans in the Senate whom he accused of distorting his response and blocking his agenda.

But what spooked markets, and what has sent both US futures and European stocks lower, was Trump's threat to bring the U.S. government to the brink of a shutdown if needed to pressure Congress into funding the border wall that was a centerpiece of his 2016 campaign, stoking renewed fears that the debt ceiling debate will be far more contentious that the market expects.

 

And the inflection is getting worse...

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BaBaBouy's picture

Hehehe, Crazzee Thump ...

GunnerySgtHartman's picture

Anyone care to speculate what it will take to push gold through $1300?  Or will TPTB continue to keep a lid on it?

Sky flyer's picture

Actual hot war could push gold to $1300.

BaBaBouy's picture

Cryptos are showing the markets that Fiats are untrustable...

A bullion backed Blockchain may be the catalyst.
When the Paper manipulation Dam breaks GOLD in Paper Fiats will explode.

GunnerySgtHartman's picture

A bullion backed Blockchain may be the catalyst.

So when will we get there?  Or does a bullion-backed crypto exist already?  Not bashing ... I am unaware of one.

elMente's picture

Heard of this one a while ago but didn't do any research on it, yet:

https://www.gldcoin.com/

Seems to be Saudi-based tho... 

 

NugginFuts's picture

China/Russia/Iran/Allies announce new dollar alternative backed by actual physical gold. At the same time, OPEC dumps the petrodollar and switches to the new gold-backed global currency.

I know, I'm dreaming again.

FreeShitter's picture

When the shitshow finally comes apart, gold will finally be unleashed.

BandGap's picture

As soon as I free up some cash to buy they will go up. I will keep you posted.

eclectic syncretist's picture

The jawboning at the latest bankster circle-jerk might move things, especially if Yellen sticks by her pledge to dump the Fedster banks unaudited garbage on the public.

https://www.kansascityfed.org/publications/research/escp

spastic_colon's picture

dont be surprised to see a reversal today/this week to make sure J Hole goes off like clockwork..............

Quivering Lip's picture

"I am the king of debt. I love debt, I like playing with it."

eclectic syncretist's picture

Swim in a pile of greenback debt notes then LOL

Rainman's picture

...bbutt .. I thought MEXICO was gonna pay for that Wall.

Memedada's picture

Hehe, hopium can create a good feeling in the short run (hopium defined as “believing in what they’re saying they will/can do”). Over time hopium loses its effect and an empty feeling of apathy takes over – that is the feeling you get when confronted with reality. Trumpards – like Obamatards – are at the moment slowly feeling the cognitive dissonance that is a result of Trumps hopium. Talk to an Obamatard about how to deal with it. They have the experience.

The saddest response I see on ZH to all of us who sees Trump for what he is (a joke at best, and a – willing or unwilling - tool for the deep state at worst) is do you prefer Hillary? As if you’re only allowed to chose between the pawns put before you by your masters. The POTUS is not elected but selected. Trump would never have had a chance if he wasn’t given the record amount of free airtime. Another curious and sad fact about US oligarchy: it is and has always been the candidate with most MSM-exposure that wins. An empirical fact. Whether the exposure is negative or positive is irrelevant.

0valueleft's picture

Where's Gartman?

onthedeschutes's picture

Gartman is doing his level best to locate and contact Clarence Beeks.

onthedeschutes's picture

Today's "straight line ramp to green" brought to you by the makers of the PPT.

moonmac's picture

The Trump Pump Bump just jumped the hump now it’s time to dump ahead of the slump before you take a lump on your rump you stupid Gump.

World Cash Day's picture

SHUT HER DOWN TRUMP.

AND DON'T BRING THEM BACK UNTIL 2018.

100 DAYS TO THINK ABOUT THE WALL.

GernB's picture

Doesn't the government shut down every weekend?