US Stocks, Bonds, Dollar Bid After Quitaly Chaos, Rajoy's Rout, & Trade War Turmoil

US Bonds Up, US Stocks Up, US Dollar Up... Everything is awesome!

Here's why:

  • New anti-establishment Italian government? Check.
  • New anti-establishment, socialist Spanish government? Check.
  • Trade war between the US and Europe, Mexico, & Canada? Check.
  • Deutsche Bank (most systemically risky bank in the world at one point) downgraded to a B-handle? Check.
  • Fed Tightening as rate-hike odds rise after good jobs data trumps EU risk? Check.

The holiday-shortened week ended with Nasdaq and Small Caps outperforming, but The Dow lower...

 

On the day, stocks outperformed post-Trump's tweet on payrolls, bonds and gold ended lower...

 

EU banks blodbath'd...

 

The big US banks ended the week in the red...

 

Big Tech soared...

 

This won't end well...

 

Another big short-squeeze this week...

 

Credit markets rallied back from extreme after Italy but remain notably decoupled from equity risks...

 

Treasury yields all ended lower on the shortened week, with the long-end outperforming...though a massive intra-week range after Italy's chaos...

 

The yield curve flattened for the 5th time in six weeks to new 11 year flats...

 

Oh and ignore this...

 

The Dollar Index managed to hold on to gains to make it 7 weeks in a row of increases...(though the last two weeks have been very rangebound)

 

Emerging Markets FX erased last week's dead cat bounce gains...

 

Bitcoin, Litecoin, and Ripple ended the week unchanged after some notable volatility but Ethereum and Bitcoin Cash underperformed...

 

Ugly week for WTI as Copper outperformed...

 

WTI closed back below $66 for the first time in over 6 weeks...

 

Gold pushed back below $1300 into today's close...

 

And finally, there's this - probably nothing though...

Comments

Kaiser Sousa Fri, 06/01/2018 - 16:05 Permalink

first i'd like to extend a heartfelt thank you to the Bureau of Lying Statistics for allowing me to add at a discount another 1/4 oz. of Physical Gold to my reserves 2day courtesy of yet another completely bogus "jobs“ number that the Savior of so many around here just “couldn’t wait to see” this morning...

its truly a miracle how Orange Julius in such short order has managed 2 resuscitate Ameridumbs' moribund, gutted out, financialized economy & turn it back into the industrial & manufacturing global dynamo of years long gone…   yep, keep the "Fool-Aide" flowing and the "blue pills" popping cause that really is steak that the 99% are chewing on all across this “exceptional” nation…  

but i digress...

"NEW YORK, May 31 (Reuters) - Sales of American Eagle gold coins in May increased by 433 percent from April, and were the highest May sales since 2015, U.S. data showed on Thursday. U.S. Mint sales of American Eagle gold coins totaled 24,000 ounces in May, up from 4,500 ounces in April, the data showed. May figures were the highest since 2015, when 21,500 ounces of American Eagle gold coins were sold by the U.S. Mint.”

https://www.reuters.com/article/usmint-coins/update-2-u-s-mint-american…

I’m sure those of us who "understand" & therefore "stick to the plan" can appreciate the inverse correlation between demand/supply and of course the phony paper price action…

DEATH TO THE MONEYCHANGERS.

 

adr Tim Knight fro… Fri, 06/01/2018 - 16:49 Permalink

And yet Zero Hedge hasn't been wrong the entire time. A lie is still a lie, even if people believe it.

Just because the market has gone up, doesn't mean that it isn't a bubble and destined to crash.

Everyone that invested in the '90s bubble, the '00 bubble, and the '10 bubble were and are wrong.

For the last 30 years there has been no such thing as a bull market. Only a bullshit market. A con game of epic proportions.

In reply to by Tim Knight fro…

el buitre adr Fri, 06/01/2018 - 21:44 Permalink

The reason that ZH doom porn hasn't happened yet is that the major central banks and the clandestine and highly criminal ESF have done things that mainstream economists would have found unimaginable 20 or 30 years ago.  If you were predicting negative interest rates in 1990, you would be laughed out of the room.  Fed increasing its balance sheet 5X in 2-3 years.  $23 Trillion in swaps with other central banks.  Stealing a cool trillion from the taxpayers to keep the Morgue and Vampire Squid alive.  Bank of Japan owning over 90% of their sovereign doubt and most of the Nikkei 500 ETF's.  ECB buying any piece of paper that didn't come out of the septic tank, and some that did.  Who cuda thunk?  But it looks like this road has reached the cliff's edge right now.  I, for one, cannot imagine another trick they could pull to prevent a GFC 10 times bigger than 2008 going down in the next 12 months and probably sooner.  But then again, maybe I just don't have a creative enough imagination to keep up with the psychopaths running the show.

In reply to by adr

adr Fri, 06/01/2018 - 16:45 Permalink

Oil can drop another $10 and pump prices will stay above $3.00. Then we'll get an oil rally back to $65 and gas will go to $3.50.

When oil goes up $5, pump prices immediately skyrocket. When oil falls $15, gas prices take two months to drop if they even do.

Oath Keepers Fri, 06/01/2018 - 17:06 Permalink

The corruption and deception have been ongoing for a long long, LONG time.. Its just now they have realized the sheep are to busy with their shinny distractions to give two shits about the worlds biggest lie.

 

TradingTroll Fri, 06/01/2018 - 17:49 Permalink

Memo to Tylers:

 

Apparently you’re having a hard time keeping up. I guess that’s what happens when you scurry off, abandoning your website clients, because some lawyer has small balls and tells you not to participate in the discussions on your own website (as if that absolves you from responsibility for content). So now users of the site get inundated with even more ads as viewership is down since the Tylers  participation in the discussions created a good feedback loop.

Well, so much for a perfectly functioning feedback loop because the Tylers  killed it.

 

Bottom Line: it’s sad when the anti-establishment site you visit goes establishment 

 

 

 

Anyway, your coverage of cryptos is wanting:

 

EOS (crypto) has almost twice the market cap of Litecoin and is #3 in volume after Bitcoin and Ethereum 

 

EOS’s volume on Bitfinex is about 3.5x Bitcoin cash, 6x Ripple and 8x Litecoin.

 

You need to cover EOS not Litecoin