Markets React Violently To China's Stealth QE

From copper to high-yield credit and from stocks to bonds and gold, markets are reacting violently to the headlines from China that they are unleashing another 500bn Yuan "stealth QE"... everything is rallying.. except the USD (biggest drop since May).

 

US markets...

 

Stocks are being driven by AUDJPY...

 

FX... USD's biggest drop since May!

 

with AUD and EUR bearing the USD weakness brunt...

HY credit tracking stocks higher...

 

Commodities are all surging...

 

Copper surges and halted...

 

Halting futures for 10 seconds...

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Let's hope risk asset algos aren't misinterpreting USD weakness-driven FX moves as a risk-on driver for too long...

Charts: Bloomberg