Tech Wrecks, Semis Slammed As Trump's Trade Turmoil Hammers Huawei

It just got real in the trade war...

 

China started ugly but was rescued back to merely unattractive...

Huawei bonds plunged...

 

European markets were ugly with Italy leading the way...

European technology stocks had the worst day since Apple’s revenue warning in early January as the Huawei hammering rippled through markets...

But Europe also suffered as Deutsche Bank hit new record lows...

 

The Nasdaq led today's declines in US markets (thanks to blowback from Trump's Huawei move and Google's decision)...

Futures show the action really accelerated during European hours as Google and others cut ties from Huawei...

Trannies managed to get back green briefly (and Dow tried desperately)...

 

S&P's Buy-The-F**king-Open pattern continues...

 

Dow futures seem to have found support around 25,500-600...

 

Small Caps broke below their 100-DMA (already below the 50- and 200-DMA)

 

As Tech wrecked...

Semis sucked...

 

Sprint spiked on FCC T-Mobile approval headlines then dropped on DOJ un-approval rumors...

 

Tesla stock tumbled below $200 for the first time since Dec 2016 (bonds collapsed to record high yields)...

And TSLA CDS spiked...

 

Credit and equity protection costs were notably higher... (the former blowing out more)...

 

Despite equity weakness, bonds were also sold today with the curve around 2-3bps higher in yield (except the long-end outperformed)...

NOTE - the selling started the moment US cash equity markets opened.

The yield curve was yanked steeper today, drastically avoiding the inversion signal...

 

The dollar slipped lower on the day...

 

Yuan was higher on the day but well off the overnight spike highs...

 

Colombia's Peso was pummeled to Feb 2016 lows...

 

Cryptos were weaker today but held on to their gains over the weekend...

 

Bitcoin reached a new cycle high overnight but gave back some during the day, sliding back below $8000...

 

WTI managed to hold on to gains today thanks to three surges off the lows...

 

Silver outperformed gold on the day...

 

Finally, the outlook for U.S. companies doing business with China is growing more gloomy...