Stocks, Bonds, & Gold Gain As Easing Hopes Hide Global Risks

Another buyback-sponsored surge in stocks met with gains in bonds and bullion...

Once again all eyes were on the yuan fix overnight which was set weaker than 7/USD for the first time since 2008, but was slightly stronger than expected (and thus interpreted as China seeking stability)...

Source: Bloomberg

Chinese stocks managed modest gains only again after the fix (and better than expected trade data), but remain well in the red for the week...

Source: Bloomberg

European markets surged intraday with France's CAC40 back into the green for the week...

Source: Bloomberg

Swissy was safe-haven bid against the Euro as Italian politics reared its ugly head again...

Source: Bloomberg

US Equity markets were ramped back to unchanged on the week...

Small Caps and Nasdaq outperformed on the day...

Dow futures have retraced Fib 61.8% of the post-Powell plunge...

 

3rd day of a huge short squeeze...

Source: Bloomberg

 

Kraft Heinz crashed to record lows...

Source: Bloomberg

 

BYND was battered back below its Secondary offering price

 

VIX dropped back to a 16 handle today..

 

Stocks and bond yields dramatically decoupled this afternoon...

Source: Bloomberg

Treasury yields surged early on but between the Italian political news and better-than-expected tail in the 30Y auction, yield tumbled back lower in the afternoon... and are still dramatically lower on the week...

Source: Bloomberg

2Y underperformed, flattening the curve modestly (and a new cycle low in 2s10s)...

Source: Bloomberg

It was another large range day for bonds though (11bps in 30Y after the longest-duration auction ever)...

Source: Bloomberg

Mirroring yesterday's yield plunge and surge...

Source: Bloomberg

The Dollar Index ended the day lower, but remained in the narrow range of the week...

Source: Bloomberg

Cryptos were lower on the day with Bitcoin still the week's biggest gainer...

Source: Bloomberg

Another failed attempt at $12k overnight...

Source: Bloomberg

WTI bounced back today on the heels of more chatter from Saudi on stem price drops (and hope of another trade truce with China)...

Source: Bloomberg

Oil prices surged over 3% today, extending yesterday's Saudi bounce gains...

 

 

Iron Ore prices continue to plummet...

Source: Bloomberg

Gold managed gains as it surged back higher on the auction/Italian headlines...

 

And finally, with today's re-plunge in TSY yields (and the likely shift in Bund yields due to Italy crisis), negative-yielding debt debacles are leading gold higher...

Source: Bloomberg

And as a quick reminder, Gold remains the biggest winner since The FOMC meeting and stocks worst...

So on the week: Stocks are unchanged, TSY yields are down 14bps, Gold is up 3%, and the dollar is fractionally lower. One of these things is not like the other!!