Market Update: Surveying The Damage

The algos could have a problem getting out of this one. From Mrs.Watanabe (JPY -170pips, NKY -500 points from highs) getting hammered (and the Hang Seng -5%) to European sovereign bond spreads exploding (Portugal +170bps - biggest spike in 2 years to 8 month highs) and financial stocks collapsing (-4%), safe-havens are heavily bid from gold and silver (+3% from lows) to US Treasuries (10Y dropped 8bps) and global equity markets are taking it on the chin. Not pretty...

 

Just as Mrs. Watanabe was getting back in the water...

 

and hopes of China doing well slayed...

 

Europe is a bloodbath - especially bonds...

 

with Portuguese bond spreads blown out...

 

and European financials are getting crushed...(catching down to credit)

 

and safe havens are bid...

 

and Treasuries and US equities are back to their anti-correlated selves...

 

and Crude continues to surge... implying $4 gas prices coming soon...

 

Charts: Bloomberg