Dollar Jumps, Stocks & Bond Yields Dump As Not-Dovish-Enough Draghi Disappoints

Can you remember the last time the stock market dropped on the day a central bank went full dovetard?

 

China is unstoppable - an early dip was bid, but some very last minute weakness was evident leaving all but SHCOMP red on the day...

European markets were a big focus today as Draghi reversed back into full dove mode...but as is clear the kneejerk gains were quickly dismissed as EU banks tumbled...

Germany's yield curve flattened notably (as 10Y yields tumbled to its flattest since Oct 2016)...

And the Euro tumbled, eventually running stops thru 1.12...

...to its lowest since June 2017...

 

US markets were not mixed at all - they were down... again... with Small Caps the big laggards...

 

The S&P 500 broke below, bounced, then retested its 200DMA...

 

Dow Transports are now down 10 days in a row - that is the equal longest losing streak since 1972

 

Notably, breadth is starting to roll over, with the number of overbought stocks tumbling...

 

Kroger was krushed after big misses and slashing its outlook (and not helped by AMZN)...

 

The big banks had another ugly session...

 

Credit markets continued the week's carnage (to one-month wides) and VIX also bounced up towards 18 (one-month highs)...

 

Treasury yields tumbled once again today - erasing most of last week's weakness - with the belly of the curve down over 6bps

 

5Y Yields plunged to their lowest in a month after tagging the pre-FOMC levels...

 

ECB and Fed rate expectations remain notably negative for 2019, both legging down today after Draghi signaled lower for longer...

 

The Euro weakness sparked a confirmed break above 97.00 for the DXY...

Today was the biggest jump in the DXY since Aug 2018...

To the highest since June 2017...

Emerging Market FX was hammered once again today... (biggest two-day drop since Nov 2018)

 

The Argentine Peso plunged to a new record low...

Yuan also tumbled...

 

And before we leave FX land - HKD touched the lower band of its peg...

 

Litecoin extended the week's gains in cryptos...

 

WTI managed gains - thanks to a European session rally - as PMs and copper slipped lower as the dollar surged...

 

WTI continues to trade in a range...

Notably, amid all the turmoil in currencies - Yuan in gold terms (or vice versa) was extremely stable...

 

Finally, it can't be this easy, right?