Stocks Steady Amid Brexit Bounce, Yellen Yawn, & Copper Chaos
By Tyler Durden
Seemed appropriate…
The polls and the bookies are very far apart…
Which impacted Cable but stocks didn't care…
Equity market volume was abysmal…
Stocks really went nowhere today with Trannies and Small Caps underperforming…
But are still up notably from the moment Jo Cox death was announced…
Short-term vol soared… (VIX tagged 19 briefly but STVX surged)
Treasury yields pushed higher across the complex again today, not helped by an ugly 5Y auction…but ended only 1-2bps higher
Following this morning's poll – with a rise in “Leave” votes – Cable sold off and US Dollar rallied for the first time in 5 days…
Cable gone nowhere in 36 hours…
This is anything but over – ST Cable vol is spiking vs 1m Vol.
Commodities were mixed as USD strength kept a lid on PMs while copper and crude surged into expiration….
And finally, copper prices surged by the most in 6 months in the last 2 days. Of course the “Bremain” rally helped but, given the expiration of the July contract – and the fact that someone had basically cornered the copper market – we suspect this surge is much more technical forced-in buyers than anything 'fundamental'. Based on Bloomberg's prices, July drastically outperformed Sept futures today into its expiration…
And crude round tripped (ahead of tonight's API report) on the back of denied reports of a ceasefire between militants and the government in Nigeria…
Charts: Bloomberg
Source: Stocks Steady Amid Brexit Bounce, Yellen Yawn, & Copper Chaos
