Stocks Stumble As Fed Hawks Tamp Down Terror-Attack Exuberance
By Tyler Durden
Belgian PM Charles Michel said earlier that “this is the deadliest attack on Brussels ever,” and
Because whoever is buying knows that if stock sell-off then the terrorists win… which can be summed up as…
European “investors” bought the deadliest terror attack dip…
Because in the new normal – It's easy…
BUT… The Fed had different views and unleashed The Hawks to tamp down the terror attack exuberance:
- *EVANS: I THINK THE FUNDAMENTALS ARE REALLY QUITE GOOD
- *EVANS: MARCH PROJECTED FED HIKE PATH IS `A PRETTY GOOD SETTING'
Across asset classes, only The USD Index maintained the reaction (stocks, bonds, and gold reverted)
On the day, in The US, Nasdaq was bid (thank sto Biotechs) and Trannie whacked (airlines) but Dow and S&P batteled between bullish terrorism and hawkish fed…
Dow Futures show exactly what happened – machines ran stops off the lows but were unable to maintain momentum (no matter what JPY did) to new highs and so collapsed into the close…
As USDJPY and Stocks tracked each other perfectly…
Traders rushed for the safety of Biotechs..
VIX was slammed to a 13 handle once again but Fed's Evans' hawkish comments sparked a lift in VIX…
Treasury yields and stocks decoupled early, then yields spiked after EU closed…
until Europe closed then a flood of selling struck…
The USD Index was bid led by EUR weakness and a plunge in cable… as Brexit odds rose…
Commodities all rallied on the Brussels headlines then spent the rest of the day giving it all back as the dollar rallied…
Charts: Bloomberg
Source: Stocks Stumble As Fed Hawks Tamp Down Terror-Attack Exuberance
