chek'd and beautiful FLOTUS and pepe
Global Markets Slide, Yields Collapse As European Recession Deepens
The kool-aid wears off as this was earlier in the day
>>5822142 pb Asian shares hit 6-1/2-month high on tech hopes
>>5823354 pb CEO of Oracle Corp (ORCL) Safra Catz sold 5,000,000 shares of ORCL on 03/20/2019
After yesterday's furious rebound in the S&P, which almost appeared staged to confirm the Fed hasn't lost control after its shocking doubling down on dovishness which resulted in a bizarre drop in stocks in the last 30 minutes of trading on Wednesday, the rally once again fizzled overnight, dragged lower by European stocks with U.S. equity futures following, while the euro tumbled and 10-year German bunds slumped into negative for the first time since 2016 after miserable data from the German manufacturing sector renewed worries about global growth on Friday.
The Stoxx Europe 600 reversed earlier gains, with German shares tumbling 0.6% to hit their lowest in two weeks as markets in Paris and London FTSE tumbled 0.8% after Markit reported that sentiment in Germany's manufacturing sector cratered, plunging to 44.7, the lowest since 2012.
Europe’s auto sector led the fall, dropping one percent, while industrial goods and banks dropped sharply as well. Notable movers this morning included Aggreko (+3.8%) at the top of the Stoxx 600 after being upgraded to buy at Stifel Nicolaus. Smith’s Group (+1.1%) are in the green following the company stating they plan to separate their medical business and thereafter separately list it in the UK.
“Numbers like the ones we have seen this morning from the European manufacturing sector in Europe would suggest there is more weak data to come,” said Tim Graf, EMEA Head of Macro Strategy at State Street Global Advisors. “Everybody is looking for that inflection point, I guess, for when it is finally going to get better - and it’s not quite arrived yet.”
“Manufacturing output has been declining, which means that growth continues to be based on service sector developments,” Bert Colijn, Senior Economist at ING Bank NV in Amsterdam, said in email to clients. “To fire on both cylinders again, the euro zone seems to require the global growth outlook to improve.”
The MSCI World index slipped 0.2%, pulling away from the 5-1/2 months high hit earlier in the week. U.S. stock futures indicated the souring mood would spill over to Wall Street, with e-mini futures for the Down Jones, S&P and Nasdaq all down 0.5%. (they have dropped further since the article was written-see futures cap)
Meanwhile, on Friday Bloomberg reported that U.S. officials downplayed the prospect of an imminent trade deal with Beijing, just as a U.S. trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin is set to visit China on March 28-29.
The euro erased a modest gain, tumbling almost 100 pips and briefly dipping below 1.13
The decline in German bund yields comes after the U.S. yield curve flattened further overnight, indicating increased market expectations of a recession. The spread between the three-month Treasury bill yield and the 10-year note yield shrank to its narrowest level since August 2007, collapsing to just 2 basis points.
“The main market reaction to the Fed’s announcement was that it has become a consensus that the Fed’s next move is a rate cut,” said Naoya Oshikubo, senior manager at Sumitomo Mitsui Trust Asset. “As economic data from China and elsewhere has not bottomed out yet, investors will be looking at economic fundamentals for now. If there are improvements, then markets could roll back expectations of a Fed rate cut."
The plunge in the euro helped push the dollar up 0.3 percent against a basket of six rival currencies in a second straight day of gains.
One day after the EU granted Theresa May an unconditional 2 week Brexit delay until April 12, the algos were in charge of setting the price, with the British pound swinging wildly without news, and after sliding sharply from 1.3160 to 1.3082 before squeezing the new weak hand shorts sharply higher.
( The volume in WTI is notable this morning-seems a defense of price is being attempted-gold price steady so far at $1311.40)
rest at links
https://www.zerohedge.com/news/2019-03-22/global-markets-slide-yields-collapse-european-recession-deepens
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil