There’s only one clip that seemed to sum up today’s trillion dollar printfest exuberance…
But it wasn’t all shits and giggles… inflationists may have been disappointed by only a 3bps jump in 5Y5Y Fwd Euro inflation expectations, weakness in European sovereigns, a tumble in US Treasury yields, and a plunge in crude oil…
For a few minutes there, everything was not awesome… but stocks staged a late-day panic-buying “everything is awesome” melt-up (on no new catalyst at that point) moving into the green year-to-date to “prove” central planners have it all worked out…
As cash indices gapped open higher, retraced to fill the gap – ripped to the European close – stabilized – then melted upo in the afternoon on the back of JPY weakness
Which lifted stocks into the green year-to-date…Â But The Dow lost Green right at the close
Financials were the day’s big winners in stocks (even though the yield curve flattened even more, and credit markets – which did rally today – remain flashing drastically red). Energy stocks rallied 0.4% even as crude oil crashed 4-5%
USDJPY was fully in charge of stocks… (as JPY and EUR battled for shittiest currency in the world)
EURUSD was baumgartnered… almost 300 pip drop
Which smashed the USD 1.5% higher… its biggest single-day rise in 18 months
To new 11-year highs…
But the USD strength did not affect gold or silver which surged post-ECBQE (as copper and crude were clubbed)… with gold closing above $1300 at 5-month highs
With crude crashing to a $45 handle after QE (USD strength) and EIA inventory build…
Treasury yields saw a massive swing – with 30Y dumping 15bps after the ECB QE news before leaking back higher…
Quite a decoupling from stocks…
Rather oddly, Russian stocks soared today… despite the renewed carnage in crude oil… (after tracking in a highly correlated manner for days)
