Today's v-shaped recovery in US equities was brought to you by the number 107 (USDJPY target) and the words "Scottish poll" which showed a majority of "no"s this afternoon. Early weakness in stocks (but not in Treasuries) reversed almost perfectly as Europe closed and JPY started to ramp towards the next logical stop run at 107.00. Nasdaq led the way (as AAPLites swept back in) and pushed into the green for the week (while the rest are still red). Treasury yields rose on the day, led by the long-end (30Y +3bps) stalling some of yesterday's flattening (5Y +9bps on the week). GBP rallied notably after the "no" poll which kept pressure on the USD (closing practically unch on the day). Gold, silver, and oil slipped lower as US woke up then stabilized. Credit spreads compressed on the day but not as exuberantly as stocks even as VIX dropped back under 13 again. For the 2nd day in a row, the S&P 500 closed below 2,000 - turmoil?
So NOT Panic...
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Suddenly, iClocks are all the rage - though note that AAPL was unable to hold above the iPhone 6 "news" level..
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But it's JPY selling that drives the market remember...
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Nasdaq managed to scramble back to green on the week...
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As a positive Scottish poll appears to have been just enough catalyst to spark momentum this afternoon - and high beta followed... (notice Trannies diverged notably into the close)
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From last week's dismal jobs data print, it is the JPY-linked Nikkei that has exploded higher...
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Convergence complete...
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Rates rose on the day, led by long-end weakness which offsets some of yesterday's notable flattening...
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FX markets were dominated by JPY weakness (pressing to 107) and GBP strength (over 1.62) as the "no" poll hit...
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PMs and Oil slipped lower into the 8amET witching hour then stabilized...
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Charts: Bloomberg
Bonus Chart: Who knew what when?
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