1:25pmCDT Clockwise: AUD/USD, GBP/USD, USD/CHF, EUR/USD, EUR/CHF, USD/JPY, USD/CAD
5:35pmCDT Clockwise: AUD/USD, GBP/USD, USD/CHF, EUR/USD, EUR/CHF, USD/JPY, USD/CAD
16:56 EDT 3:56pmCDT
EUR/USD Commentary
Euro jumped higher suddenly against the dollar in late trade in the Americas session after investors likely
repositioned themselves for a risk-off scenario for Tuesday, said Axel Merk, chief investment officer of Merk
Investments. Investors have come to realize that the dollar is breaking away from some correlations, Mr. Merk
said, such as appreciating during flights to safety. "People are scrambling to reposition themselves before the
morning," Mr. Merk said. "They want to buy assets that are cheap, such as the euro." The single currency rose to
$1.2762, from $1.2694, now up 1% on the day. (james.ramage@wsj.com) (END) Dow Jones Newswires
Dow Jones Industrial Average 16,321.07 Down 223.03(1.35%) 4:30PM EDT
S&P 500 1,874.74 Down 31.39(1.65%) 4:30PM EDT
Dow Jones Transportation Averag 7,717.69 Down 175.57(2.22%) 4:30PM EDT
Russell 2000 1,049.30 Down 4.02(0.38%) 4:10PM EDT
Manic-Buying Turns To Panic-Selling As 'Illiquid' Stocks Plunge To 5-Month Lows
From: http://www.zerohedge.com/news/2014-10-13/manic-buying-turns-panic-selling-illiquid-stocks-plunge-5month-lows
Just as we warned, liquidity was incomprehensibly low today (below normal pre-market levels
during the peak of the trading day) and the intraday whipsaws were meteoric as a closed cash bond
market enabled the slightest twitch in USDJPY to send S&P algos into conniptions. Biotech crashed. Trannies
were ripped ridiculously higher at the open - then collapsed into correction (-11% from highs); US Airlines
have fallen for 6 straight days, crashing 17% (with today's 7% plunge - driven by chatter over
airborne Ebola - its biggest in over years). Tresury futures implied a notable drop in yields across the curve
(10Y -7bps at 2.21%, 30Y 2.97%, and 5Y 1.45%). The USdollar closed -0.33% led by EUR and JPY
strength (but AUD surged 1% extending gains after China data). Gold ($1234), Silver, and copper all
gained on the day as WTI fell once again (despite some intraday strength in the middle of the day). Stocks
"flash-crashed" on very heavy volume in the last 30 mins with VIX breaking above 24 (highest in 16
months). All major equity indices are now below their 200DMA with the worst 3-day loss since
late 2011.
Liquidity was simply not there - but but but HFTs?
Which meant - just as we warned - epic whipsaws in stocks...
As USDJPY tested down towards 107...
and Tresasuries led stocks lower all day...
Leaving all the major indices red on the day (even after Russell tried to stage a big comeback)... just look at
Trannies at the open!! (that's not a fat finger!!!)
A look at futures trading shows the magical levitation overnight giving way to reality in the US session...
Year-to-date, Dow joins Russell in the red, Nasdaq getting close...
VIX punched above 24...
Airlines index crushed...
Bonds may have been closed but futures implied some big yield drops on the day...
Credit was closed today but just as a quick context for where stocks might end up...
FX markets were also thin but notable moves in AUD and SEK as the USD weakened again... the moves
were dominated by the overnight China data
Commodsities rallied (on safety and weaker dollar) but WTI fell once again... (even after a modest rally
intraday)
Charts: Bloomberg
Bonus Chart: Remember what happened the last time Japan raised taxes...
In summary: