Right, so Wednesday was in many respects just the opposite of Tuesday.
The leader of Italy’s anti-establishment 5-Star Movement on Wednesday appealed to the far-right League to drop its insistence that euroskeptic economist Paolo Savona should be economy minister in a government of the two parties.
“Let’s find someone of the same caliber as Savona, who would still remain in the government in another ministry,” 5-Star chief Luigi Di Maio said on Facebook after meeting with President Sergio Mattarella. “If the League agrees … we can still form a government.”
As Savona was the sticking point, that might help allay fears about Five Star’s penchant for adopting an aggressively anti-euro stance on par with that generally espoused by League.
Italian 10Y yields were richer by some 25bps on the day, but I mean, despite today’s rally, it’s a shitshow:
The euro, already rising on the heels of a raft of upbeat econ data out of Germany, got an extra boost from the Five Star headlines:
This was the best day for Italian stocks in nearly two months:
Best day for Italian banks since early February, trimming days of egregious losses:
The lira rallied again as the market seems to be getting more confident in CBT’s ability to fend off Erdogan in the interest of supporting the currency. Here’s a chart going back to last week’s emergency rate hike:
EEM rallied on the day, but it’s worth noting that the index is sitting near a six-month low:
First day of gains in more than a week for crude, which jumped 2.3%:
It’s been a fun week already for U.S. stocks:
Record high for small caps:
Bill Gross had his worst day in four years on Tuesday and while you can read the full story here, this is the visual:
That’s probably at least in part attributable to the Treasury rally on Tuesday, which reversed itself a bit today as 10Y yields rose ~6bps.
Oh, and finally, if you’re wondering what Donald Trump thinks about Roseanne calling African Americans “apes”, just know that as usual, he thinks the real victim here is Donald Trump:
One last thing. Hucka-San needs you to understand that while that tweet might seem like an absurd way to frame the issue (especially coming from the goddamn President), he’s just “calling out hypocrisy”:
.@PressSec on Pres. Trump's tweet about "Roseanne" cancellation: "He's simply pointing out the bias. The president is pointing to the hypocrisy in the media…" https://t.co/TIirOXMruT pic.twitter.com/zRACni5atS
— CBS News (@CBSNews) May 30, 2018
“Whataboutism” at its finest.