Stocks, Bonds Manage Modest Gains Despite Global Currency Carnage

The Turkish Lira today...

Chinese stocks had an ugly start to the week...


 

European stocks were not much better (not helped by the collapse in German factory orders)

 

And while US equity futures were down in the pre-market, the cash open prompted the ubiquitous buying panic...

 

Trannies, Small Caps, and Nasdaq outperformed on the day...

 

As yet another short squeeze was engineered...

 

But as we noted earlier, breadth in the rally has collapsed...

 

FANG stocks mounted valiant rebound today thanks in large part to Facebook's 4% pop...

 

VIX closed at lowest since Jan 26th...

 

Despite Jamie Dimon's fearmongering over 5% rates, yields actually fell on the day

 

10Y Yields fell to near 3-week lows...

 

The biggest action today was in the FX markets however.

The dollar ended the day higher...

 

Emerging Market FX dropped to 3-week lows... while the Turkish Lira dominated, the Rand, Ruble, and Colombian Peso, and Brazilian Real were all hit today...

 

The Loonie slammed lower overnight on the Saudi sun headlines (but rebounded after US equity markets opened)...

 

However, The Turkish Lira was clubbed like a baby seal as a central bank dollar liquidity boost utterly failed sending Erdogan's currency crashing to new record lows...NOTE - today was a 22 big figure crash (biggest absolute drop ever)!! The 2nd worst percentage change day for the Lira since Lehman.

 

Cable slumped back below 1.30 - to 11-month lows - after hard brexit headlines hit...

 

And finally, offshore Yuan manage to unwind most of the kneejerk gains from Friday's PBOC forward market intervention...

 

Cryptos are off to a weak start to the week...

 

WTI managed to hold on to gains ahead of the Iranian sanctions but copper led the commodity slide with PMs weaker again...

 

Copper diverging lower from gold signals another leg lower in Treasury yields...

 

Which could be a problem for the record shorts...

 

And finally, as disappointing as the economic data becomes, high-flying tech stocks remain impervious...

Bonus Chart: Considering Jan 22nd 2018 as the start of Trump's fight with China (when he imposed safeguard tariffs on solar panels and washing machines), the following chart makes it pretty clear who is winning the trade war...