Stocks, Yield Curve Slammed After China Hike, Draghi Taper, & Tax Tumult

Did Senators Lee and Rubio (and Hatch) just go full "Leeroy Jenkins"?

 

A surprise China rate hike (and disappointing retail sales) sparked weakness in Chinese stocks...

 

Mario Draghi managed to talk the Euro and Bund yields lower (despite attemptting to raise inflation forecasts)...

 

Since the FOMC meeting, Bonds and Bullion are well bid as stocks and the dollar sink...

 

US equity indices were all lower on the day, despite valiant attempt at a late day rally... Small Caps were worst followed by Trannies...

 

VIX was up today as stocks ank (VIX closed above 10!)

 

But we note the correlation between stocks and VIX remains extreme...

 

 

 

High Tax companies underperformed once again...

 

Along the same lines, value factor has notably underperformed the last few days as tax hope fades...

 

And financials have suddenly started to weaken in the last two days...

 

Treasury yields were mixed today with the long-end dramatically outperforming

 

Sending 2s30s tumbling 5bps back below 90bps... This is the biggest percentage drop in the yield curve since Brexit and the lowest close print for 2s30s since Oct 2007...

 

 

 

The Dollar briefly rebounded early on Draghi but faded after Lee and Rubio...

 

AUD is the strongest major on the week after good jobs data...

 

Copper continued to rebound (and WTI popped today after overnight weakness), PMs remain green on the week...

 

In the cryptospace - Litecoin was sold, Ripple was heavily bid, Bitcoin Cash and Bitcoin Gold were up notably with Bitcoin and Ethereum marginally higher. The Bitcoin futures-cash spread compressed some more as an increasing number of brokers allowed shorts...

 

Gold and Bitcoin refound their correlation today...

 

Finally, we note the S&P 500 is at the intersection of a numerologist's nightmare... 

The next multiple of 666 is right there!

h/t Brad Wishak