Sunday, 22 December 2024

Gold & Crypto Rip As US Stocks Shrug Off Shanghai Money-Drop


One of these things is not like the others...

Source: Bloomberg

Chynaaah crushed it this week as Beijing unleashed the bazooka to Make China Wealthy Again after one of our best-timed calls ever...

European equities benefited more from the apparent liquidity-gasm coming from the east, but US equities were mixed on the week with Small Caps actually ending lower and Nasdaq managing only a 1% gain (well offthe 2.5% gains at the peak mid-week)...

Not exactly the kind of week the bull shad hoped for when China dropped their Headlines.

Mag7 stocks ended the week unchanged...

Source: Bloomberg

China Internet stocks soared 32% MTD, while Mag7 stocks are up just 3%...

Source: Bloomberg

'Most Shorted' stocks managed decent gains on the week (thanks to Thursday and Friday)...

Source: Bloomberg

Growth and Value were equally (mildly) impressed this week

Source: Bloomberg

Fed rate-cut expectations chopped around but were basically unchanged on the week (thanks to a dovish shift today)...

Source: Bloomberg

Treasury yields were mixed on the week and only modestly changed close-to-close on the week with the short-end outperforming (2Y -3bps, 30Y +1bps)...

Source: Bloomberg

The yield curve steepened notably to start the week, then flattened aggressively yesterday, bouncing back off unchanged on the week today...

Source: Bloomberg

The dollar weakened for the 4th straight week, closing at its lowest since Dec 2023...

Source: Bloomberg

Gold rallied for the 3rd straight week, breaking to new record highs before today's sell-off...

Source: Bloomberg

Bitcoin also rallied the 3rd straight week, breaking above $66,000 today...

Source: Bloomberg

Ethereum rallied off January lows and broke above $2700 this week...

Source: Bloomberg

Despite all the stimmies and WW3 risk, oil prices were lower on the week (of course)...

Source: Bloomberg

Finally, macro growth data is surprising to the upside, and macro inflation data is surprising to the downside...

Source: Bloomberg

Does that look like an environment that needed a 50bps rate-cut? Or that needs 75-100bps more by the end of the year?

Perhaps this is why gold and crypto is rallying hard...

Source: Bloomberg

US Sovereign risk exploding higher... did The Fed cut rates to rescue the Treasury?


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