Asia Opens And Risk-On Closes

Tyler Durden's picture

Update: Gold and Silver are extending losses now.

Asian markets have been open for an hour or two now and markets have done nothing but extend the late-day derisking from the last hour of the US day-session. S&P 500 e-mini futures (ES) are down around 8pts from the close, Treasury yields are 5-7bps off their intraday highs now (3-4bps lower than where they closed), JPY is strengthening (carry-off - even though Noda is scheduled to speak), AUD is weakening (carry-off - almost back to post Aussie jobs print levels), and Copper & Oil are tumbling (WTI back under $83). Gold and Silver are falling off quicker now (having suffered during the day session and stabilized a little) as it seems markets are playing catch up to their signals (still around unch from 5/28 closing levels while WTI is down almost 9% and Copper -3.5% from those swing equity highs). Broadly speaking risk assets are increasing in correlation and ES is getting dragged lower.

Commodities are struggling as USD strength leaks back into the markets this evening...

It would appear that Gold's relative exuberance on QE hope has reverted and post 5/29 swing highs in stocks it looks like QE-sensitive assets are recoupled for now...

After being led up by ES for a few days, broad risk assets (as proxied by CONTEXT) are now being led back down...

and cross-asset-class correlation is picking up (generally implying a systemic response to either risk-on or risk-off)...

 


 

S&P 500 e-mini futures have almost retraced 38.2% of the bull short-squeeze leg up now...

 

Charts: Bloomberg and Capital Context