China Saves The World As Gold Gains Most In 5 Months

China “unleashed hell” on the shorts with its promise that banks would resume a “counter-cyclical” factor when calculating the yuan’s daily reference rate, restraining the influence of market forces that have been driving the currency lower versus the greenback.

Sending offshore yuan soaring by the most since Jan 2016…

 

Catching up with, and then leading, US equity futures…

 

Igniting momentum in stocks at the open that held on all day..

 

And as Yuan soared, the dollar dumped…

 

Helping send gold back above $1200..

 

To its best week since March…

*  *  *

Thanks in large part to Monday’s National Team intervention, Chinese stocks had a big week…

 

All major US equity indices ended the week green, led by Small Caps and Nasdaq… The S&P and Dow were the laggards…

 

FANG Stocks soared…

 

Bonds and stocks were both manically bid this week – and especially today…

 

Treasury yields were mixed on the week with the short-end offered and long-end well bid…

 

30Y Yield tumbled back below 3.00%… (lowest yield close since July 19th)

 

The yield curve continued to collapse with 2s10s in the teens and 2s30s testing 30bps…

 

The dollar’s drop helped send a number of EM currencies higher but Brazilian Real and Argentine Peso were pummeled…

 

Dollar weakness helped send all major commodities green on the week led by WTI…

 

And finally…

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Author: Tyler Durden