Global markets continued to fret over Trump’s trade war on Thursday, leading to sour risk sentiment both in the U.S. and across the pond in Europe.
But let’s just kick this off with a little slow motion “covfefe”:
You’re in good hands America.
Stocks were sharply lower and the Nasdaq couldn’t save you today.
8-day losing streak for the Dow.
Treasurys rallied – 10Y yields lower by 4bps:
The Daimler news weighed on sentiment. This looks like it was the worst day for the European autos sector since Brexit and it caps off a five day decline (down everyday since Draghi):
Italian assets were crushed as two euroskeptics were appointed to head up parliamentary committees. There’s more on that here, but the bottom line is that this was the second-worst day for the FTSE Italia All-Share Banks Index since the May 29 massacre:
BTP-bund spread wider by some 25bps:
Stoxx 600 lowest since late April:
Obviously, the FTSE was all about the BoE today. That 6-3 vote was a surprise – Haldane’s in the hike camp now. Goldman’s base case is still November, but we’ll get something by the end of the year and August is alive. No need to overcomplicate today’s action:
Some folks are buying the dip in EMB:
As Lisa notes, that’s the biggest one-day inflow in history.
The Argentina ETF and the Saudi Arabia ETF both got a boost today from the MSCI news:
BCB is still struggling to keep control of the BRL – more swaps auctions:
Capital Economics doesn’t see things getting any better anytime soon for EM. “The selloff that began in April shows no signs of slowing down and external conditions aren’t improving,” Oliver Jones wrote in a note on Thursday, adding that the “policy adjustments by EM central banks, like previous rate hikes in Turkey, Indonesia and Argentina, FX auctions and currency swaps, will probably be insufficient to prevent EM currencies from weakening further.” So that’s fun.
On the heels of yesterday’s FT report that tipped a 600k-800k bbl/day deal, Iran still sounds recalcitrant. “It wasn’t a good meeting. It was just ceremonial statements,” Zanganeh told reporters in Vienna, adding that he’s not optimistic. That came just after this headline hit:
- OPEC+ TALKS INCLUDE 1M, 1.5M, 1.8M B/D QUOTA HIKES: DELEGATE
Brent on the day:
WTI fared better and as Bloomberg notes, Genscape apparently caught motherfuckers off guard today, reporting that Cushing supplies fell some 2.45m barrels Friday through Tuesday.
Oh, and the iShares China Large Cap ETF has fallen for 11 straight sessions, the worst streak since May 2012:
Finally, for your moment of zen…
USA USA USA. Mindless.
Dan, can you tell me about this last video with assface having the guy removed — ? What was the photo in his hand? I have not seen/heard about this at his scum only rally.
I would like someone to ask this cretin just why in the hell does he think Mexico would do anything to help us as he states in his drunken video at top — all he does is lie and insult and instigate trade war with them and then he has the balls to complain they won’t work with him about the immigrants they allow them across their country to our border. hahaha — Lord, what a total loon he is — they don’t kiss the feet of the king and he is not pleased. LOL!
P.S. I miss the Lock her up chorus 🙂
I’m just curious, how does Hollywood (the industry which BIRTHED and carried him, especially Mr. Zucker) benefit from his presidency? Sure they get provocation, content, finger in eye of all decent people watching, but quam bono?
Hollywood only exposed him for the imbecile that he is — and how easy to manipulate him with cheap flattery. Now, couple that with his paternal history of Nazi grandfather and racist father. Throw in his eagerness to be the tough guy in the crowd, lie and fake his way to domination by taking advantage of everyone he had business with but ultimately he was outsmarted. Pushed into the WH by those ascendants who needed to use him so they could take control of this country. Eventually he became hooked, caught by those smarter powers and to survive his ultimate fear to not appear weak or stupid, he ended up in their net. Word is he is going to meet his puppeteer in July.