Financial news

Yuan Crashes Most In 25 Years As August Ends With Bonds & Bullion Bid

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Via Zerohedge

Well that was quite a month…

High(Low)lights…

  • China’s Renminbi suffered its biggest monthly loss since 1994

  • EM FX tumbled to a record low, worst month in a year

  • US Treasury yields plunged in August by most since Sept 2011 (to record low yields at the long-end)

  • US Yield Curve flattened most in August since Jan 2016 (to its flattest since 2007)

  • Bund yields tumbled 26bps to record lows – the biggest monthly drop since June 2016 (Brexit vote)

  • Treasury ‘VIX’ spiked most in August since May 2009

  • Iron Ore Futures (Singapore) suffered their worst month ever…

  • Gold has the best August dollar gains since Feb 2016

  • Silver had best August percentage gain since June 2016 (Brexit vote)

 

Stocks

US and Chinese stocks are surprisingly aligned YTD (both up around 16/17%) with Europe lagging (+13%)…

Source: Bloomberg

But on the month, all major regions saw stocks lose a similar 1.5 to 2.0%…

Source: Bloomberg

 

US equities ended the month lower with Trannies and Small Caps worst, Dow and S&P the least worst…

Source: Bloomberg

 

Only The Dow Industrials and Transports are green from last week’s Trump tantrum (S&P unch)…

NOTE – last minute panic-buying

 

Defensives dominated the month…

Source: Bloomberg

The Dow managed to get back above its 100DMA but faded into it at the close today…

 

Buybacks saved stocks numerous times this month…

Source: Bloomberg

And while short-squeezes were used to keep stocks afloat, their surges were weaker and weaker…

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Source: Bloomberg

And… as @TaviCosta notes, another one bites the dust. This beauty was the #2 performer in the S&P 500 since March of ’09! Just broke down from multi-year support line as well.

Source: Bloomberg

 

Bonds

Treasury yields utterly collapsed in August (30Y was down over 60bps at its lowest)… The biggest monthly drop in the long-bond’s yields since Sept 2011

Source: Bloomberg

30Y ended the week below 2.00% for the first time ever…

Source: Bloomberg

A bloodbath for bond bears…

Source: Bloomberg

And the yield curve collapsed (3m10Y) holding its inversion for

Source: Bloomberg

And 2s10s closed the week inverted (biggest 2-month flattening since Jan 2015)…

Source: Bloomberg

And before we leave bondland, we note that 30% of global IG corporate debt is now trading at a negative yield!!

Source: Bloomberg

FX

The Dollar rallied in August helped by Yuan weakness slightly offset by Yen strength…

Source: Bloomberg

The broad trade-weighted dollar is at an all-time record high…

Source: Bloomberg

EURUSD tumbled back below 1.10 for the first time since May 2017

Source: Bloomberg

Emerging Market FX tumbled to record lows…

Source: Bloomberg

Cryptos ended in the red for the month after yesterday’s plunge (Litecoin the biggest loser)…

Source: Bloomberg

With Bitcoin back below $10k…

Source: Bloomberg

 

Commodities

Silver’s best month since the Brexit vote (June 2016) and Gold rallied but crude and copper were clubbed like baby seals…

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Source: Bloomberg

Cotton fell for a fifth straight month in August, the worst such run in more than 14 years, as slowing demand feeds expectations for a global surplus.

Iron Ore Futures (Singapore) suffered their worst month ever…

Source: Bloomberg

Silver led the precious metals but Platinum had a big month (up most since Jan 2017)

Source: Bloomberg

Gold ended the week unchanged but well up from Trump’s tantrum…

 

But Silver dramatically outperformed (up for the 7th week of the last 8)…

Source: Bloomberg

With Silver at its highest since April 2017

Source: Bloomberg

Gold continues to track the surge in negative-yielding debt volumes almost perfectly…

Source: Bloomberg

 

Finally, bonds and stocks had a very different month, you decide which you trust more…

Source: Bloomberg

Will it be 1998 or 2013?

Source: Bloomberg

While August saw a flood into safe-havens like bond and bullion, volatilities are notably divergent in Treasuries and Gold relative to other asset classes…

Source: Bloomberg





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