Quite a day…
- All-time record lows in many Emerging Market Currencies (TRY, ARS, VENZ (unof.) most)
- Nikkei 225 -3.75% – biggest drop in 7 months
- Emerging Market Stocks -3% – (4 month lows)
- USD Index -0.7% – biggest drop in 3 months (2014 lows)
- USDJPY -1.3% – biggest drop in 5 months
- AUDJPY -2.35% – biggest drop in 7 months (4 month lows)
- Dow -1.3% – biggest drop in 5 months (5-week lows)
- 30Y Treasury Yield -9bps – near biggest drop since April 2013 (2-month lows)
- Gold +2.3% – biggest gain in 3 months (2 month highs)
- VIX +1.8vols – biggest jump in 3 months (1 month highs)
- IG Credit +2.5bps – biggest jump in 5 months (1 month wides)
- HY Credit -$0.5 – biggest drop in 4 months (1 month lows)
It seems that without the safety net of Fed flows, the reality that bad news might just be bad news and event risk is a real risk just started to hit home. The deer is back…
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Personally, I think they are getting prepared for the collapse. Why else would they not extend Unemployment Benefits?