As we noted early on, by the time the cash markets opened this morning, the narrative of compliant Kuroda and drug-peddling Draghi had been painted as worth more than a yellowing Yellen's hawkish comments. And so it was that stocks, despite weak macro data this morning in the US - bad news is great news - surged as cash markets opened and tagged S&P 2,000 for the first time ever. However, once Europe closed, that exuberance faded in stocks. Treasuries rallied (30Y closed -2bps) with the front-end weakening very modestly. USD strength (on notable EUR weakness) sent oil and precious metals modestly lower on the day but Copper had a good day (+0.6%). Today was the lowest S&P futures (non-holiday) trading of the year as the Nasdaq rose for the 9th day in a row.
So to summarize - Bonds Up, Stocks Up, USD Up... But VIX Up, Oil Down
S&P Tags 2,000... on lowest volume day of the year
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Since Yellen, stocks are up and fololwing their historical betas...but notice the behavior after Europe closes...
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The divergence between bonds and stocks remains...
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Even JPY carry is starting to diverge...
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as VIX broke higher today...
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As the surge into the USD brings flows into stocks and bonds... mostly driven by EUR weakness
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As the USD rose, oil and PMs sankbut Copper bounced back...
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The standard witching hour startat 8amET once again provided fireworks in commodities...
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Once Europe closed, bonds rallied - especially the long-end
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Charts: Bloomberg
