What A Week: Bonds Battered, Copper Clubbed, Stocks Slide As China Currency Crumbles

Well that was a week...

Biggest weekly drop in US Macro data in 6 weeks... Yuan down, stocks down, bonds down, Copper down, Pound down... VIX Up, USD up,

The Dow was briefly ramped to unchanged on the week but ince Europe closed weakness came back into US equity markets...

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And after hours S&P 500 futures pushed to the lows of the day and went red... 

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The S&P broke its wedge... to the downside... 

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And the S&P broke its Post-Feb uptrend... 

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Small Caps (Russell 2000) have dropped 3 weeks in a row for the first time in 4 months... the biggest drop since May. (IWM down 6 of the last 7 days) 

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VIX pushed up against its 200DMA once again before being slammed lower today below 16... 

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The last hour or two of the day today saw aggressive selling across the bond curve which had the smell of risk-parity deleveraging... 

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Correlation across bonds and stocks is dropping a little... 

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The yield curve steepened notably for the 2nd week in a row... 

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To its steepest weekly close since Brexit (back above 170bps) 

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The USD rose for the 2nd week in a row to 8 month highs... led by Cable weakness... 

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As Cable closed the week at multi-decade lows and Gilt yields spiked... 

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But all eyes were on Yuan... 

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Crude tumbled back to around unchanged on the week today (as copper was clubbed)... 

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Copper tumbled for the 2nd week in a row for the biggest drop in 5 months... 

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Hillary's best week (relative to her Trumpian benchmark) sparked derisking across the asset classes... 

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Disclosure: None.

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Moon Kil Woong 7 years ago Contributor's comment

The US stock market performed very well considering the rest of the world.