Stocks, Yield Curve Slammed After China Hike, Draghi Taper, & Tax Tumult

By Tyler Durden of ZeroHedge

Thursday, December 14, 2017 9:21 PM EDT

Did Senators Lee and Rubio (and Hatch) just go full "Leeroy Jenkins"?

Video length: 00:02:50

A surprise China rate hike (and disappointing retail sales) sparked weakness in Chinese stocks...

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Mario Draghi managed to talk the Euro and Bund yields lower (despite attempting to raise inflation forecasts)...

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Since the FOMC meeting, Bonds and Bullion are well bid as stocks and the dollar sink...

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US equity indices were all lower on the day, despite valiant attempt at a late day rally... Small Caps were worst followed by Trannies...

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VIX was up today as stocks ank (VIX closed above 10!)

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But we note the correlation between stocks and VIX remains extreme...

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High Tax companies underperformed once again...

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Along the same lines, value factor has notably underperformed the last few days as tax hope fades...

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And financials have suddenly started to weaken in the last two days...

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Treasury yields were mixed today with the long-end dramatically outperforming

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Sending 2s30s tumbling 5bps back below 90bps... This is the biggest percentage drop in the yield curve since Brexit and the lowest close print for 2s30s since Oct 2007...

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The Dollar briefly rebounded early on Draghi but faded after Lee and Rubio...

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AUD is the strongest major on the week after good jobs data...

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Copper continued to rebound (and WTI popped today after overnight weakness), PMs remain green on the week...

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In the cryptospace - Litecoin was sold, Ripple was heavily bid, Bitcoin Cash and Bitcoin Gold were up notably with Bitcoin and Ethereum marginally higher. The Bitcoin futures-cash spread compressed some more as an increasing number of brokers allowed shorts...

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