UPDATE: Sell-off gathering pace now. WTI lagging a little more now at $84.6 -$1.2 and ES back at this week's lows as Gold has retraced all its knee-jerk gains
The initial knee-jerk reaction is a closing of the hope-gap between stocks and gold as S&P 500 e-mini futures are down 6pts or so from pre-NFP and Gold is up $11. Treasury yields are dropping relatively fast to the lows of their recent range under 1.56%. For now modest reactions in IG and HY credit (but markets are thin there this week). The USD is just a little weaker and WTI crude is limping lower but not spectacularly. European sovereign spreads are back at their highs.
The QE-hope gap between stocks and gold has been closed on this print and Treasuries are seeing yields drop to recent range lows...
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and ES is now at cliff's edge post EU Summit...
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30 mins in - markets are not happy and Gold's reaction spike is fully retraced... as all markets drop together now...
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Post-NFP levels (30mins): HY $96.35, IG 112, ES 1350, Gold $1590, 10Y 1.55%, USD 83.03, WTI $84.48
Post-NFP levels (15mins): HY $96.5, IG 111.5, ES 1352, Gold $1607, 10Y 1.559%, USD 82.85, WTI $85.23
Pre-NFP levels: HY $96.6, IG 110.5, ES 1358, Gold $1596, 10Y 1.586%, USD 82.88, WTI $85.72