Market Closing Dashboards
China stocks gave up all their gains for the week following Powell’s rate-hike (which we note China did not respond to).
European stocks were panic-bid all day after Italy plunged out of the gate on budget headlines once again.
US Equity Futures drifted lower after the cash close yesterday then levitated as Europe opened and into the US cash open when a panic bid hit Nasdaq (but nothing else). Nasdaq futures managed to hold gains post-Powell but S&P and Dow rolled back over.
Cash indices on the week shows Nasdaq touching unchanged before being bid, rest of the US majors all red on the week.
Interestingly – with Small Caps so ugly this month – “Most Shorted” stocks tumbled after Powell yesterday and held those losses today.
With one day left in the month, Nasdaq (and Small Caps) remain in the red for September.
FANG Stocks continued their melt-up from Monday’s ugly gap down open.
Tech has dominated financials for the last few days.
Treasury yields are very modestly higher on the day (well unch at the long-end and up just over 1bps from 5Y in).
The yield curve continued its flattening, back near cycle flats.
The Dollar Index surged back up to 2-week highs, extending post-Powell plunge bounce.
USD gains were largely prompted by EUR weakness as Italian budget headlines didn’t help (EUR down most in over 6 weeks).
Some questioned whether the EUR weakness was prompted by what appeared to be a dollar liquidity panic into quarter-end as basis swaps blew out (3m EUR-USD basis spiked most since Lehman). Likely this is due to quarter-end dollar funding demand.
Despite a record bailout from The IMF and pulling forward the borrowing, Argentina’s Peso tumbled today.
On the other end of the scale, the Turkish Lira surged to 6-week highs..
Dollar gains weighed on commodities broadly today with Copper and PMs ugly, WTI held up.
WTI Crude had quite a volatile day, whipped higher on Perry SPR comments and back down on Saudi comments.
& last but not least; Gold futures back below $1200.
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