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Tiger...

China was closed overnight, but China stocks ETF in US shows weakness after China cancels trade talks...

 

European stocks sank - led by Spain and Italy - extending losses after Draghi discussed pulling away the punchbowl...

 

US futures show the initial reaction was lower on Sunday night, then as the US cash markets opened, S&P and Dow were dumped but Nasdaq was panic-bid (underperformer last week). S&P/Dow legged lower again on Rosenstein headlines then rebounded after headlines that Trump will meet him on Thursday...

 

Nasdaq managed to get green on the day as Trannies lagged - The Dow ended near the LoD...

 

Lots of M&A today but Sirius and Pandora ended the day red...

 

But both Randgold and Barrick ended the day green...

 

For a sense of today's manic algo-buying, here are FANG stocks...opened gap down to last week's lows then ramping almost 4% off those lows to erase all of last week's losses...

 

Among the biggest losers were GE - which fell to 9-year lows on turbine woes and Iraq contract threats... (trading at the same price it traded at in Nov 1995)...

 

And finally, there's Tilray, which fell back below $100 today...

 

Despite the equity selling, Treasury yields rose marginally on the day (not helped by a weak 2Y auction - lowest BtC since 2008)...

 

The 10Y Yield rose on the day to a new cycle closing high, but as the chart below shows, the last few days' ranges have been de minimus (as stocks have pumped and dumped)... (3.055%, 3.063%, 3.063%, 3.063%, 3.081%)

 

The Dollar Index had quite a day, sliding lower as Europe opened (China closed), spiked lower on EUR gains after Draghi inflation comments, only to surge higher for rest of day on safety concerns following Rosenstein resignation headlines...

The Dollar extended gains into the close to end at the high of the day...

 

Offshore Yuan slipped lower for the 2nd day in a row (even with China closed)...

 

While HKD was relatively flat after Friday's short-cover-carnage, Hong Kong money-market rates went a little turbo...

 

The Turkish Lira surged today (best performing currency of the day), extending gains on Pompeo comments...

 

But the Brazilian Real slumped (worst performer of the day) as the left-wing Workers' Party is said likely to reach the runoff vote in Brazil's election...

 

And the Argentine Peso was pummeled after returning to Lagarde to ask The IMF for more...

 

Cryptocurrencies are lower from Friday's close...Ripple dumped...

 

WTI Crude managed gains on the day (OPEC headlines) as copper and PMs slipped lower as the dollar rebounded...

 

Brent Crude topped $81 for the first time since Nov 2014...

 

Finally, we note that Money Market Funds have dramatically shifted their allocations from Q1 (record buying in US Treasuries) to Q2 (record selling in US Treasuries)...

However, as Bloomberg points out, The Federal Reserve’s latest reading on America’s finances showed that money-market mutual funds were the biggest buyers of Treasuries in the first half of 2018, according to Jay Barry, a fixed-income strategist at JPMorgan Chase & Co. The central bank’s quarterly financial accounts data showed the funds, which favor Treasury bills, purchased a net $118 billion of the government’s debt in the period. That’s a swing from 2017, when they sold $95 billion. The buying dovetailed with the government’s bias toward bill sales in the first half as it boosted borrowing to finance a widening deficit, Barry said.