Ahead of a week full of data and central banks, it is likely unsurprising that volumes were dismal and protection/hedging was sought. Once again we saw dips bought with a rush to get markets green (after the collapse in Asia overnight weighed very modestly on Europe and US markets) but once a few people realized the impact of the Treasury's latest refunding data (must read) [3] stocks did sell off into the close.
[4]
Trannies had the worst day since 6/24...
[5]
This was the worst day for the S&P futures in a month with a 0.4% sell-off. Once cash markets closed,futures popped back up to VWAP. The USD ended the day unchanged (but AUD was 0.7% weaker and JPY 0.4% stronger as carry unwinds are clear). Commodities slid on the carry weakness with Silver -0.8% and gold holding $1330 with a small loss. Brent-WTI pushed further ahead to $3 (with a small loss in WTI under $104.50). Treasury yields leaked higher with the long-end underperforming (30Y only +3bps).
[6]
Builders, financials, and energy underperformed on the day; Utes and Staples were best.
[7]
Charts: Bloomberg