Xi & Zuck Save The World - Stocks Soar, Bonds Ignore

Tech regulation? meh... Trade Wars? Pffff... Economic data weakness? ha...

 

China's Xi sparked the overnight bid in US equity futures which hovered around the cliff-edge from last Thursday's plunge for the rest of the day...

 

Cash markets drifted largely sideways from their gap open until Zuck started speaking then everyone got excited...

 

Small Caps are back in the green year-to-date, joining Nasdaq as Trannies remain the laggards...

 

All on the back of yet another huge short-squeeze

 

Facebook ripped higher as soon as Zuck started speaking...

 

FANGMAN stocks all surged again today but NVDA and AMZN remain red in April still..

 

Banks extended gains on the day but note that all the gains were overnight and in fact bank stocks ended below their open...

 

Bonds were not buying the equity market exuberance at all...

 

Treasury yields were mixed on the day with the long-end outperforming (unch) as the short-end sold off (2Y +3bps)...

 

Breakevens jumped back to yesterday's highs as real yields fell...

 

30Y Yields tested down towards a 2 handle once again...

 

And the yield curve flattened further with 2s10s back below 50bps...

 

The Dollar Index fell for the 3rd straight day to 10-day lows...

 

Cryptos bounced today, with Ethereum up 11% since Friday's close...

 

Despite Ethereum suffering a death cross today...

 

Dollar weakness has helped spark commodity strength but crude stands out...

 

WTI/RBOB and Energy stock prices soared for a second day...

 

Finally we note that 'soft' survey data has collapsed in recent days as hope tumbles back to 'hard' data's reality...