Trump Tariff Threat Sparks Commodity Carnage, Yield Curve Crash, Stock Slump

And that happened...

China tumbled overnight...

Europe was ugly...

US Futures show the action best... the sudden panic bid at the US cash open...

 

The machines managed to get Small Caps back to unch before it all dropped again..

 

Dow tested down to its 50/100DMA and rebounded intraday...

 

Dow fell back into the red year-to-date...

 

Global Banks tumbled today after a brief bounce...

 

FANG stocks plunged at the open - then the PPT sent them back to the highs...

 

While stocks fell today, they still have a long way to go catch down to the bond market's reality post-Trade-Wars...

 

Treasuries were bid on the trade war, sold off during the day then were bid into the close

 

And the yield curve collapsed to new cycle lows...

 

The Dollar spiked to its highest since July 4th...

 

Offshore Yuan crashed to its lowest close in 12 months...

 

Turkey was a bloodbath today with Lira and stocks battered...

 

 

PMs limped lower but copper and crude were crushed...

 

Commodities were clubbed like a baby seal today - crashing most since 2014 to a new record low...

 

Copper crashed...

 

Crude collapsed...

 

The Global growth scare is upon us...

Comments

Solosides Wed, 07/11/2018 - 16:00 Permalink

Tonight our rulers will sleep with their MK-ultra'd sex-slaves in guarded stone castles after eating real food.

You, will eat plastic chemical goo and sleep in a rice paper box called a "house" while the blue glow of the TV and the LED streetlights ensure you never get any actual REM stage sleep.

brian91145 Wed, 07/11/2018 - 16:13 Permalink

lol I think the FED is about out of ammo here. I hope Trumps plan is to crash the market and get rid of the FED/ IRS but I fear that's wishful thinking. The yield curve will invert, no stopping it 

BandGap Wed, 07/11/2018 - 16:20 Permalink

Well boys, this calls for a tall glass of bourbon, maybe a little ice. 

The financial, political and social worlds all just waiting to crater. 

Something to tell the grandkids if I make it through!

JibjeResearch Wed, 07/11/2018 - 16:50 Permalink

I'm Deepppppppppppppppppppppppppppppppppppp

in the city withhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

cryptos collection

Bahaha ahhaha ahahhaaaaaaaaaahahaha

and I get my rice from Costco ehehehhe...

I have to give up an extra 250 pennies ahahaha....  fucken Trump!

But if he gets the taxes to zero... I'll change my mind :)

Jazzyg Wed, 07/11/2018 - 16:55 Permalink

meanwhile...today

i traded a whole stash(16) of generic Silver Bars to a person who had Canada Maples

all he wanted was Bars,and not rounds...yeah,i caught that bid

Fiat Burner Wed, 07/11/2018 - 17:07 Permalink

The twilight zone continues. People are dumber than ever.  I guess 10 years of near 0% interest rates and 4.5 trillion in fake money will do that to a society. 

Pseudonymous Wed, 07/11/2018 - 17:20 Permalink

Trump really intends to "retaliate" against American consumers for foreign governments' tariffs?

Americans are so weak they can't figure out how to smuggle their stuff without paying the preposterous tariffs that foreign governments are demanding. Instead of fighting back, they are hurting themselves.

mosfet Wed, 07/11/2018 - 17:24 Permalink

Tax cuts followed by Tax hikes (i.e. tariffs).

Who could have seen that coming right?  US Gov has to fund exploding deficits somehow.  Fed, Japan, Russia, Cayman Islands, China all selling US paper so the money has to come from somewhere.  If Trump backs away from tariffs, watch yields spike not long after as US debt goes looking for actual buyers vs loading up Americans with inflationary consumption taxes.

bigloser mosfet Wed, 07/11/2018 - 21:00 Permalink

Good point on tariffs.

Seriously, though, when has the Donald backed away? Not likely.

Prepare for deflation. Trump is putting his real estate strategy to work. Squeeze hard, break it, buy at (or near) bailout price.

You think Trump is wouldn't crash the entire system to fix it?

In reply to by mosfet