Trade Turmoil Sparks Worst Week Of 2019, Wipes Over $2 Trillion Off Global Stocks

A couple of tweets, and just like that $2.5 trillion of global equity market cap evaporates...

As stocks went from 'everything is awesome' to the worst week of the year in an instant...

With global money supply failing to support the illusion...

As stocks began to catch down to the far less exuberant global systemically important banks...

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China's National Team refused to let stocks fall overnight (following the tariffs) and obviously lifted the market dramatically. However, it was still the worst week of the year...

 

An ugly week in Europe too with France and Italy worst...

 

The week in US equity markets has been dominated by algos chasing headlines about trade talks with dead cat bounces giving way to reality checks...

NOTE - today's "constructive" talks headline prompted the 4th biggest buy program of the month (PPT?).

Notice that the market turned around when the world's biggest money-losing IPO opened...

It seems it took the algos a long time to actually read He's and Mnuchin's comments:

  • Liu He: "No talks are scheduled from here"

  • Steve Mnuchin: "No future talks planned as of now"

But when they did, stocks rolled over...

 

Smells like PPT turned up after Mnuchin's comments as VIX flash-crashed (signaled) at 0830ET today then fell after Mnuchin's comments...

 

VIX has been inverted all 5 days this week...

 

Prompting a huge short-squeeze lift. just like on Monday (fail) and Thursday (fail)...

 

This is the seventh Friday in a row where a sudden panic bid lifted stocks...

 

The Dow ended below its 50DMA for the 3rd day in a row but the rest of the majors scrambled back above the key technical level...

DMA

 

And then of course, there's Uber...


 

Second worst week of the year for credit markets...

 

Treasury yields fell across the curve this week but the long-end notably underperformed...

 

The Dollar ended the week unchanged...

 

Yuan fell all week...biggest weekly drop in yuan against the dollar since June 2018

 

Yuan tumbled to 4-month lows...

 

Bitcoin soared on the week, along with Ethereum...

 

Bitcoin rallied above $6400 as trade tensions escalate...

 

Despite the dollar's flat week, silver slumped and crude managed gains...

 

And finally, it appears "constructive" is the new 'put'...