The world and their mum will be overjoyed all is fixed again in Spain and Apple can be bought safely as today's ramp-a-palooza in risk-assets indicates. However, the 100-pip run in EURUSD which 'correlated-ly' ramped everything did more damage than good in the long-run as Oil prices surged off their 'see QEternity inflation is only transitory' way. WTI topped $92 (up over 3% off yesterday's lows) as Gold and Silver surged on the day to end up around 0.25% on the week (in the face of a 0.25% strengthening in the USD on the week). JPY strength and moreover EUR's push dragged the USD 0.5% lower from yesterday's peak and provided just the lift to get the S&P back to Monday's lows, filled a gap in AAPL's chart and lifted the financials ETF briefly back up to unch from pre-FOMC. Volume and trade size was large as we ramped and drofted once we topped - which smells a lot like pros seling into a stop-run-driven strength. Equities pulled back into the close (even as VIX limped back under 15% down almost 2 vols today) catching down to risk-asset's slightly less ebullient perspective.
Gold remains the winner of the major asset classes this week as USD strength led stocks lower into the close...
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The S&P 500 futures market saw a major push in delta (cumulative 'buying' volume bias) as we tested back down below the FOMC lows but no follow through. As we pushed higher so average trade size rose notably (blue bars - h/t @eminiwatch) - and some decent volume right at the close too...
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And while WTI had the biggest day, Gold and Silver are still enjoying the week - despite USD strength +0.25% on the week)...
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Treasuries ended the day 2-5bps higher and steeper in yield.
VIX fell around 2 vols - back under 15%.
Risk-assets (proxied by our CONTEXT indicator below) rallied up to equities in the European session - were very highly correlated for most of the morning until after the EU Close and Spain started talking - then trod water while stocks popped and dropped...
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Charts: Bloomberg and Capital Context
Bonus Chart: AAPL Again - filled it's gap and pushed up to try for the closing VWAP from Tuesday's big dump AND today's closing VWAP coincides with Tuesday's closing price - what wonderfully coincidental markets we trade in...
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