Stocks Stall On Trump Tariff Turmoil, Emerging Market Massacre

Seemed appropriate as the liquidity linkages all start to drag each other down…

China stocks have almost erased The National Team’s work from Monday…

 

After overnight weakness, US Stocks drifted higher as always to start the day, then faded around the time Warren Buffett was interviewed on CNBC (offering little to stoke the bull’s argument), then rebounded after Europe closed, then tumbled on China tariffs headlines (which were 100% known to everyone already)…

 

VIX and stocks have notably decoupled…

 

S&P Industrials took the brunt of the tariff headlines…

 

But do not fear ‘Murica – Amazon surpassed $2000…

“not a bubble”

 

The Dollar index rallied on the day but reverted once again at unchanged on the week…

 

While the China Tariff headlines prompted selling in stocks, there was blood on the streets all day in Emerging Markets…

Offshore Yuan tanked after Tariff headlines…

 

The Indian Rupee crashed to a new record low…

 

The Brazilian Real was battered non-stop until BCB intervened for the first time in over 3 months…

 

The Turkish Lira tanked as the central bank deputy governor quit…

 

But the Argentine Peso was the day’s biggest loser – crashing 10% at the close (though notably worse intraday), crossing 41/USD at its worst…

The South African Rand and Mexican and Chilean Peso also plummeted on the day.

The Argentine Peso is now the worst-performer YTD – down over 50% against the Dollar…

 

Cryptocurrencies also took a hit with only Litecoin and Bitcoin holding the week’s gains…

 

Treasury yields dropped 2-3bps on the day…

 

With 30Y back at 3.00%…

 

And the decoupling between stocks and bonds in the last two weeks has been ridiculous…

 

In commodities, crude continued its rise, everything else not so much…

 

Copper was utterly chaotic today…

 

Gold was also clubbed around the open…but futures held above $1200…

 

Finally, just a little note of interest, US economic data has been more disappointing than Emerging Markets recently relative to expectations…

 

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Author: Tyler Durden

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