DXY was soft last night:
AUD was flogged:
Oil fell, gold did better:
Dirt fell:
Miners were hosed:
EM stocks too:
DM junk is not well. EM did better:
The Treasury curve took off:
And stocks slumped:
That is a very big change from 2022 dynamics. Yields and stocks fell together. The culprit was a mini-bank panic in the US as three entities delivered bad news:
- Silvergate Crypto Wank was wound up.
- There’s a run on Signature Wank equity owing to its blockchain leadership.
- And JPM went down on unfortunate connections with Jeffrey Epstein.
This all looks more idiosyncratic than it does systemic so I am not sure it is the beginning of the final washout. But it is precisely the kind of thing that will ultimately happen.
US banks were smashed. European banks tumbled. Leaving Australian banks, the most exposed to the looming recession, massively exposed:
It’s still all about tonight’s NFP. But this is a taste of things to come for bonds, stocks, and the Australian dollar.
