Stocks Swing On Headline Chaos As Cable Clobbered & Credit Cracked

Another day, another headline-driven chaos ride...

China was higher overnight...

European stocks fell with Italy leading the charge...

 

US Stocks bounced around 1pmET on reports of a trade truce from USTR Lighthizer...then sank a little on Ross comments...and then dropped again after Lighthizer's office denied reports of a trade truce...

 

Futures show a relatively uneventful night and then all hell broke loose...

 

On the week, Trannies are the only index in the green...

 

Retailers fell for the 5th day in a row...

 

Banks bounced... barely... (aprt from JPM which outperformed)

 

Credit markets have begun to seriously crack...

 

 

Treasury yields ended the day lower...with the belly once again outperforming

 

 

The Dollar ended lower after a big surge (as cable tumbled) overnight - chaotic trading in the USD but the pattern seems quite clear - buying overnight (dollar shortage) selling in US...

 

Yuan extended its gains on the week...

 

Cable had an ugly day after May pitched her Brexit deal...

 

Bitcoin Cash - amid its Fork - plunged further on the week, Bitcoin was relatively stable after yesterday's crash...

 

Dollar weakness helped commodities hold on to gains...

 

WTI Crude managed a small gain for the 2nd day in a row...

 

The big ugly in the energy complex gave some back today...

 

Finally, Eurodollar curves suggest the market is rejecting Fed tightening almost entirely... 1.5 hikes in 2018 and actual rate cuts priced in for now for 2020 and 2021...

And based on the ongoing tightness of financial conditions, S&P should be trading notably lower...