Stocks Slump Into Close As Trade Talks Stall Over Huawei; Silver Jumps, Crude Dumps

Update: Bloomberg reports that progress on a trade agreement has stalled as Trump administration works out how to address China’s demand that it ease restrictions on Huawei.

According to Dow Jones, citing people familiar with the talks that it didn’t identify, no face-to-face meetings have taken place or been scheduled since President Trump and Chinese President Xi Jinping met in Japan in June.

Stocks accelerated lower as the headlines hit...

*  *  *

"There was blood" in the oil complex as Iran tensions were de-escalated.

 

China was flat overnight as the afternoon session erased the morning session's gains...

 

European stocks were sold today, accelerating their losses after US opened...

 

US markets were ugly today with Trannies trounced (hurt by a collapse in CSX) erasing all the gains from yesterday and then some (to go from first to worst on the week)... All majors red on the week...

 

The S&P 500 fell back below 3,000..

 

VIX was notably higher today...

 

Credit markets have widened dramatically in the last few days...

 

Treasury yields tumbled hard today...

 

10Y yields are back at post-Powell prepare remarks levels...

 

The yield curve continued to flatten...

 

The 3m10Y curve has now been inverted for 38 straight days...

 

The dollar was weak today with selling pressure coming as US equity markets opened...

 

Yuan found support at the PBOC fix and rallied on the day...

 

Some early ugliness in cryptos was met with dip-buying power, lifting Bitcoin from within a tick of an $8000 handle to within a tick of $10000...

 

Still ugly on the week though...

 

Silver continues to dramatically outperform as crude is clubbed like a baby seal...

 

Oil prices plunged further as Iran de-escalation continued... (and inventory data did not help the bull's case)...

 

Gold spiked...

 

Silver soared most since January today, up to $16 for the first time since February (up 7 of the last 8 days)

 

And silver is ripping back against the yellow metal...

This silver surge should not be a huge surprise as we warned previously of the extreme level it had reached...

 

Finally, we note that the global aggregate volume of negative-yielding debt is on the rise again and along with it both gold and bitcoin...

Correlation is not causation but if anything is a sign of policymaker-idiocy, $13 trillion of negative-yielding debt must be close.