Silver & Gold Soar, Yields & Small Caps Plunge As Trade-Deal Hope Tanks

What Bill Dudley's op-ed did to The Fed's apolitical narrative...

Chinese stocks played catch up overnight with US exuberance, but its didn't hold...

Source: Bloomberg

Italian stocks outperformed today on hopes of a rebuild coalition ending the political crisis...

Source: Bloomberg

Which also sent BTP yields plummeting (to the lowest since Sept 2016) and spread to Bunds tumbled to its lowest since May 2018...

Source: Bloomberg

 

US equity markets were pumped once again overnight, dumped from the open, then managed a low vol melt-up back to unchanged for Nasdaq, S&P, and Dow; but Trannies and Small Caps were major underperformers...

 

Philip Morris and Altria announced merger talks, spiking the latter initially but it didn't end well...

 

Stocks rallied into the US open on the heels of an oddly uniform plunge in VIX, but once cash markets opened, VIX popped and stocks dropped...

 

 

Treasury yields tumbled today led by the long-end (2Y -2bps, 30Y -7bps)...

Source: Bloomberg

30Y Yields fell back below 2.00%, closing at a new record low...

Source: Bloomberg

The yield curve collapsed today.

3m10Y crashed to a new cycle low...

Source: Bloomberg

And the much-watched 2s10s plummeted to below -5bps - the most inverted since Lehman (2s30s still +43bps BUT that is the flattest in 2019)...

Source: Bloomberg

 

The Dollar Index ended practically unchanged after ramping from the US cash equity open following overnight weakness...

Source: Bloomberg

Cryptos were mixed today with Bitcoin Cash best...

Source: Bloomberg

Bitcoin managed to hold above $10k for now...

Source: Bloomberg

 

Silver and oil prices outperformed today but copper and gold were also bid...

Source: Bloomberg

Spot Silver surged to its highest since April 2017...

Source: Bloomberg

Silver dramatically outperformed gold once again (silver surging from 27-year lows relative to gold)

Source: Bloomberg

Gold continues to track negative-yielding debt higher as a proxy for pure policy folly...

Source: Bloomberg

Crude surged back above $55 on the heels of Russian comments about sticking to production goals...

 

Bonds & Bullion have been August's big winners so far with stocks suffering...

 

Finally, the odds of a US-China trade deal have collapsed back to cycle lows today, not helped by the comments from Global Times...

Source: Bloomberg

The S&P 500 is 4.5% from its all-time record high... and investors are suffering from "Extreme Fear"...

Source: CNN