The significant risk case of a sharp slowing in global growth through H2 is both real and ephemeral. So it is no surprise to see markets lurching between fear and greed as they attempt to process the prospect. For the second day in a row, significant gaps lower have been followed by enthusiastic BTFD. XJO is down and bought again:
AUD is off its lows:
Bonds are furiously bid but also off the lows:
Markets don’t want to admit defeat on banks as the yield curve crashes. ANZ’s new buyback a case in point:
Big iron is not so happy though remains close to peaks:
Big Gas is the future:
Offshore earners are still grinding higher:
I still think that this volatility will continue to the downside as China slows, the US joins it, and the global inventory cycle winds down. The main question for me is how far do we fall before plunge protection team arrives…
