An initial excited bid in US equities this morning ignited hopes that the Santa Claus rally could indeed make an appearance… but that’s all been decimated now as Nasdaq and Small Caps lead the puke lower…
Source: Bloomberg
The S&P is back below the critical JPM Collar 3835 level…
The market’s Fed rate expectations have risen hawkishly this week…
Source: Bloomberg
…and that has dragged bond yields higher (along with inflation and growth anxiety from China’s re-opening), with the 30Y getting close to 4.00% once again…
Source: Bloomberg
Meanwhile, China’s Yuan is being dumped too, back above 7/USD…
Source: Bloomberg
And gold is sliding back towards $1800…
As the USD spikes higher, and oil prices are tumbling amid very thing liquidity…
So it seems China re-opening is now ‘bad’ news, like Zero-COVID was ‘bad’ news?
Tyler Durden
Wed, 12/28/2022 – 11:11
