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Big Jobs Beat Batters Bonds & Commodities; Crypto & Stocks Bounce

Tyler Durden's Photo
by Tyler Durden
Friday, Aug 06, 2021 - 04:00 PM

Before we look at this week's market malarkey, some thoughtful words from a 'chap' that didn't want to be a 'dictator'...

After a volatile week, all major US equity indices closed higher by around 1% as cash-openings all week saw chaos...

Nasdaq was down today as Small Caps led, and the ratio of the two continued to swing around its recent month-long range...

A big surge in Value stocks today after the jobs print (and weakness in Growth) left them both up around 0.9% on the week...

Source: Bloomberg

Financials outperformed (as rates ripped higher), energy ended unch and Staples red on the week...

Source: Bloomberg

Worst week for bonds since June (first weekly rise in 30Y yields since last week of June and only 2nd weekly rise since mid May). The belly underperformed as hawkish sentiment hit today, rising 7bps on the week...

Source: Bloomberg

10Y Yields spiked down to July 20th lows and up to July 21st highs this week...

Source: Bloomberg

The last minute or so saw selling pressure lift 10Y back above 1.30%...

Source: Bloomberg

Crypto up for 3rd week in a row after big intraweek rebound as Ethereum outperformed...

Source: Bloomberg

ETH soared after its London hard fork was completed successfully..

Source: Bloomberg

Bitcoin topped $43k, its highest since May...

Source: Bloomberg

This was the best week for the dollar since June, erasing all the post-FOMC losses from last week...

Source: Bloomberg

Commodities were all ugly this week as the dollar rallied, with oil worst amid the Delta-driven growth scares...

Source: Bloomberg

Worst week for gold since June, ending well below $1800...

This was also the worst week for oil since October, with WTI back below $70...

Finally, today's big jobs beat prompted a notable hawkish rethinking of the market's attitude to when The Fed will raise rates...

Source: Bloomberg

And this was interesting - the dramatic overnight outperformance of the day session that began at the lows in March 2020 is well and truly over as the vaccines triggered an all out buy all the things move...

What can go wrong?

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