It is the 21st of October 2019

Global Stocks Soar Ahead Of Yet-To-Be-Written, "Almost Complete" Trade Deal "That Could Still Fail"

Global Stocks Soar Ahead Of Yet-To-Be-Written, "Almost Complete" Trade Deal "That Could Still Fail"

Update: Trade deal 'incomplete'

*  *  *

So... China trade deal done (ok, not really, but don't tell Trump or the market), Fed is printing again (but don't call it QE), an oil tanker is blown up in the MidEast and oil barely budges (nothing to worry about there either), Brexit Deal is increasingly likely (so leaving EU is a good thing now?)! Everything is awesome!

What Wall Of Worry? VIX tumbled to a 15 handle (but note the steepness of the vol term structure through the US primaries and blip around the election)...

Source: Bloomberg

But, will The Fed still cut rates?

*ROSENGREN: CUTTING NOW ENCOURAGES RISK-TAKING AT WRONG TIME (wait what?!)

Source: Bloomberg

And if everything is so f**king awesome, why is The Fed opening its massive money spigot once again?

*ROSENGREN SAYS RESUMPTION OF FED BALANCE SHEET EXPANSION NOT QE (oh ok)

Source: Bloomberg

Ignore this...

Source: Bloomberg

Because this...

Source: Bloomberg

China stocks strengthened notably on the week as investors returned from Golden Week...

Source: Bloomberg

European stocks also soared (with UK's FTSE 250 exploding 4.2% higher today, biggest jump since May 2010)

Source: Bloomberg

US equities soared again today on the trade deal hype, extending yesterday's gains...until the actual 'news' broke of the not-complete, could-still-fall-apart partial trade deal...

 

Also erasing the October losses (nasdaq the big gainer) until the news hit and stocks faded...

 

Futures show the chaos this week best...

with today's mini-flash-crashes and spikes...

 

US equity gains were dominated by a massive two-day short-squeeze...

Source: Bloomberg

Quants suffered as momo was battered...

Source: Bloomberg

AAPL surged to a new record intraday high today but remains, very marginally, smaller in market cap than Microsoft (based on the latest available share count of course)...

Source: Bloomberg

 

Treasury Bonds were clubbed like baby seals this week with yields surging 20-23bps...

Source: Bloomberg

30Y Yields dropped very briefly below 2.00% on Sunday night/Monday morning, then exploded higher from mid-week (biggest 3-day jump since Trump's election)...

Source: Bloomberg

The yield curve exploded steeper today with 3m10Y un-inverting (up a wopping 25bps this week, biggest jump sine Trump's election)...

Source: Bloomberg

The dollar dumped as trade hopes soared (and Brexit hopes)...

Source: Bloomberg

Cable soared a stunning 5 handles in the last two days, the biggest 2-day jump since Nov 2008 (even though -*TUSK SEES 'NO REASON' FOR OPTIMISM AFTER '3 YRS OF PROBLEMS')...

Source: Bloomberg

Offshore yuan surged on the trade hype - a strong few days after coming back from Golden Week...

Source: Bloomberg

The Turkish Lira was monkeyhammered this week as Erdogan moved back into Syria...

Source: Bloomberg

Cryptos weakened for the second day in a row but Bitcoin and Ethereum managed to hold on to very modest gains...

Source: Bloomberg

Oil ended the week the big winner as trade talk optimism juiced demand hype and gold was dropped like a used needle on Market Street as who needs safety when everything is awesome...

Source: Bloomberg

WTI rallied up near $55 handle - highest since September...

Gold futures fell back below $1500...

 

Finally, we wonder when this gets priced in...

It could never happen again, right?

Source: Bloomberg

And in summary:

Tyler Durden Fri, 10/11/2019 - 16:02

==> Source: https://twitter.com/zerohedge/status/1182747600459620354?ref_src=twsrc%5Etfw

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