"Everyone Wins In A Trade War"? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

"No one wins a trade war" they said... Well for now, everyone is winning - US, Chinese, and European stocks are up; the dollar is stronger; and the long-bond is up...

Bonds and Stocks are bid post-Trade-War-Tantrum...

 

For now Russia is winning the trade war (if stock markets matter)

Chinese Stocks love Trade Wars...

 

European Stocks love Trade Wars (apart from Spain and Italy)...

 

US Stocks love Trade Wars...

Bloomberg offers a few explanations as to why the market seems unfazed by the trade war:

1. Investors are betting that cooler heads will prevail

2. The direct impact of tariffs is not enough to have drastic economic consequences. We are talking about 10% taxes on $200 billion imports in a $19 trillion economy. There will be winners and losers, but the aggregate impact is small

3. Political uncertainty matters less than you think.

And while uncertainty soars, VIX tumbled...

 

And then there's this - ignorance is bliss...

US equities had their best week in over a month as algos BTFTWD!! Small Caps ended the week red though...

 

S&P managed to get above 2,800...

 

5 opening short squeezes in a row...

 

Wells Fargo ended the week lower and Citi unchanged but the "blockbuster" earnings this morning left bank stocks red on the day...

 

Yet again bank stocks have collapsed relative to the market and reverted back to the slumping yield curve...

 

An odd week for FANG stocks - lurch open on Monday morning and push to new record high - but Friday 13th spoiled the party...

 

Despite soaring stocks, the long-end of the bond curve ended unchanged...

 

And the yield curve collapsed to a new cycle low...

 

The yield curve collapse is accelerating...

 

30Y Treasury yield ended with the lowest weekly close since January...

 

 

The Dollar Index rallied solidly on the week...

 

The Yuan slid lower on the week once again (5th week in a row) finding resistance on a rebound twice at the CNY Fix...

 

Cryptos had another ugly week after a good start last weekend...

 

Commodities were all lower on the week...

 

The worst week since February for Bloomberg's Commodity Index but global stock markets don't care...

 

And finally, there's this...

Comments

Solosides Fri, 07/13/2018 - 16:02 Permalink

-Bankers are still not in jail
-Goys still working like starving rats
-Pedophiles still running the entire government from local to fed

Happy Friday the 13th!

Wait What Solosides Fri, 07/13/2018 - 16:31 Permalink

Want to put an end to their ponzi credit games?

Start by

1. stop buying shit you don't need with money you don't have to impress people you don't like

2. train you wife, children, siblings to do the same

3. Diversify your stores of value

4. Watch their ponzi collapse as the the excess consumption driven by borrowing, that is making you fat, and them rich, crumbles in front of their eyes

5. be ready to pick up what is left of value from the rubble

In reply to by Solosides

Solosides Wait What Fri, 07/13/2018 - 17:49 Permalink

1. I don't have any money to buy shit I don't need. My car is a 17 year old Suzuki.

2. Wife and kids? Cannot afford. See #1

3. Guns, silver, metal and wood tools, a '91 Suburban, a zillion other tools - CHECK

4. I've been watching and waiting for the collapse since before I graduated high school 8 years ago

5. Considering that everything is now made out of plastic and paper thin sheet metal, there wont be much rubble left.

In reply to by Wait What

Blankfuck Fri, 07/13/2018 - 16:03 Permalink

PONZI FUCKING GANGSTERS WINS!!, LEFT EVERYONE ELSE OUT IN AMERIKA WITHOUT BEING  BILLIONAIRES-THOSE FUCKERS!

 YES THE USA AND CENTRAL BANKFUCKS STUFFING BANKSTER FUCKTARDS POCKETS, WHERE COLLUSION AND CORRUPTION REIN! 

FUCKTARTS OF THE FED RESERVE HAD TO PRESERVE WITH THAT FUCKING  PONZI PRINTING TO THEIR BANKTART FRIENDS

DingleBarryObummer Fri, 07/13/2018 - 16:07 Permalink

FYI the only tariffs currently on China are 25% on 34 billion

Trade deficit with China 2017 was 357 billion

 

In September they are planning more ===>

“At this stage, if you look at the numbers — so an additional $200 billion of tariffs, 10% on those — that adds up to about 0.1% of U.S. GDP,” Turnill said in a Bloomberg Radio interview.
https://www.marketwatch.com/story/worlds-largest-asset-manager-its-not-…

If the market is shrugging this off, might as well go full balls===>

Donald J. Trump said he would favor a 45 percent tariff on Chinese exports to the United States, proposing the idea during a wide-ranging meeting with members of the editorial board of The New York Times - Jan 2016
https://www.nytimes.com/politics/first-draft/2016/01/07/donald-trump-sa…

Blankfuck Fri, 07/13/2018 - 16:16 Permalink

FUCK YOU FED RESERVE! GIVE ME 10 MILLION AND I WILL SHUT UP!

START PRINTING YOU FUCKTARDS AND YOU WILL NEVER HERE FROM ME AGAIN!

START YOUR LEGAL "GODS WORK" COLLUSION RIGHT HERE AND STUFF MY POCKETS HERE TOO FUCKTARDS!

Ima anal sphincter Fri, 07/13/2018 - 16:30 Permalink

I'm smiling. When you see it for what it really is, the anger just fades away.

I'm getting by. Not in a pleasurable way, but not painful either. Just dealing with the evil and theft as best I can.

Not in the market.

My purchasing of gold and silver had waned as of late, but that is not the case now. If they keep smacking it down..... I'll intensify my buying. Not great quantities..... just a pee-row boat with a trolling motor making my way up river. It's slow , but it's steady.

The dam is about to break and I'm far enough up river not be swept away. I'm "really" going to enjoy turning this thing around and enjoying the ride.

PitBullsRule Fri, 07/13/2018 - 16:31 Permalink

Another "Mission Accomplished"

Heck of a job Brownie!

Except, most of the tariffs haven't even started yet, and the Chinese have a lot of tricks up their sleeves that haven't hit us yet.

adr Fri, 07/13/2018 - 16:46 Permalink

A one dollar increase in FOB ends up being $3-5 at retail.

$200 billion in a $19 trillion economy?

Try $650-900 billion in a realistically $8 trillion economy. That is a major toll.

Anyone that thinks the US economy is $19 trillion needs to be put in the nuthouse with Elon.

Captain Nemo d… Fri, 07/13/2018 - 16:46 Permalink

Squiggles in news lead to squiggles in markets. Sometimes as expected. Sometimes not. Maybe all the algos have slowed down due to bitcoin mining spyware and are reacting to news from last week ... who will ever know.