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Late-Day China Trade Headline Spoils Low-Volume Stock Market Party

Today's liftathon in stocks bought to you by the word "partial" (as in "China is amenable to a partial trade deal" which is entirely not news at all) and the number 2829 (the S&P 500 100-day moving average) because that means "all is well"...





Trade deal odds had lifted...





Source: Bloomberg



And the S&P 500 levitated back to its 100DMA...





But a late-day headline that Beijing has lower expectations of progress - due to the goodwill damage from US blacklisting 28 tech firms:




1544ET GOODWILL DAMAGED BY THE U.S. DEPARTMENT OF COMMERCE'S BLACKLISTING OF 28 CHINESE COMPANIES THIS WEEK-CHINESE OFFICIALS



1545ET BEIJING HAS LOWERED EXPECTATIONS FOR PROGRESS FROM U.S. TRADE NEGOTIATIONS THIS WEEK-CHINESE OFFICIALS BRIEFED ON TALKS




Sparked a dump in stocks...





NOTE - the headline timing was extremely odd as it hit right as the S&P hit its 100DMA...





 



But, despite gains today, US majors remain red on the week...





Volume overall was notably weak - around 30% below average...





Source: Bloomberg



While credit markets are not in panic mode yet, leveraged loan markets are starting to crack...





Source: Bloomberg



Another day, another $30bn of liquidity rolled with The Fed...





Source: Bloomberg



Treasury yields were all higher across the curve (parallel rise of around 5bps) before the late-day headline (note the selling every day that hits around the EU close)





Source: Bloomberg



The Dollar managed gains on the day, following the same overnight weakness, European/US strength pattern...





Source: Bloomberg



Cryptos rallied on the day with ETH leading today and XRP up most on the week...





Source: Bloomberg



Commodities were unusually quiet today (apart from oil)...





Source: Bloomberg



Gold spiked to $1518 on the Minutes...





Oil spiked overnight on trade hopes and again on inventories, only to be dumped





 



Finally, the median stock is trading at a key trendline level...





And don't forget, it's all about fun-durr-mentals...





Source: Bloomberg



Is it time for another quant-quake?





Source: Bloomberg




Tyler Durden

Wed, 10/09/2019 - 16:02


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Business Finance

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