Markets In Turmoil - Bonds, Stocks, & Dollar Dumbstruck After Disappointing Draghi & Dire Data

Draghi has one message for everyone today...

 

US equities had their worst day since September 28th...

 

US Treasuries were a bloodbath...

 

European equities were an even bigger bloodbath...

 

As DAX gave back all its Paris gains... (down over 500 points and back below 10,700)

 

As European bonds utterly crashed... (Bunds seen here across the curve were massive percentage moves)

 

All driven by The 3 'D's...

  • Domestic Terrorism hinted at... and the use of the word 'radicalized' spooked a number of markets
  • Draghi Disappointed - grossly over-promised and under-delivered, trapped in a corner of QE limitations and admitt8ing it failed.
  • Dire Data - US macro plunged to its lowest level in 6 months... (bonds seem to get it)... with durable goods, factory orders, and ISM Services all crushing The Fed's narrative.

 

*  *  *

On the day, Trannies were worst but broadly speaking, the entire equity market dumped in a highly correlated manner... (notthe bounce into the EU Close then dump)

 

FANGs are not helping...

 

Futures show it's been quite a week and now all major indices are red post-Russia-Turkey...

 

After Europe closed, stocks kept falling...

 

Some notable breaks:

  • All major US equity indices are now negative year-to-date (aside from NASDAQ)
  • S&P 500 broke below its 200DMA (also got close to it 50DMA before bouncing)
  • Dow broke below its 200DMA
  • Small Caps (Russell 2000) broke below its 100DMA
  • Trannies broke below all technical support to 2 month lows

Biotechs plunged  from the 100DMA to break the 50DMA...

 

Commentators were confused why Energy stocks dropped while oil rose... this is why - they had decoupled from raw reality a month ago...

 

VIX soared over 3 handles - almost touching 20 and breaking above its 50, 100, and 200DMA... This was thebiggest percentage rise in VIX since Black Monday

 

Treasuries were a disaster, extending losses after Europe closed...

 

Credit markets have been crushed with the junkiest junk now at 6 year high yields...

 

The USD Index crashed 2.25% - its biggest single-day drop since March 2009.... (having hit 12 year highs yesterday) Put another way - today's lack of ECB action had the same effect on the USD as The Fed's unleashing of QE in 2009!

 

Led by Swissy and EUR strength...

 

Gold is now the week's biggest gainer in the commodity space (crude the loser) as the entire space picked up on USD weakness...

 

Crude's been volatile heading into tomorrow...

 

Charts: Bloomberg

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