Commodity Chaos Continues, Stocks Refuse To Bounce After Janet’s Jolt

Commodity Chaos Continues, Stocks Refuse To Bounce After Janet’s Jolt

While bonds, crypto, and the dollar largely trod water today, Commodities rose for a record 16th straight day today…

Source: Bloomberg

That is the highest for that index since July 2015…

Source: Bloomberg

After Janet Yellen shit the bed yesterday, today’s bounce was barely noticeable (and non-existent in most cases)…

The Dow outperformed on the day with Big-Tech and Small Caps the laggards…

At 1400ET a major sell program slammed stocks – around the same time as the Biden admin supported the waiver on COVID vaccine-patents at the WTO.

Source: Bloomberg

Get back to work Mrs.Yellen…

Peloton puked as it recalled its child-eating Treadmill…

 

Treasuries were modestly bid today, improving late on as stocks slumped. The belly is outperforming this week with 7Y down 6bps…

Source: Bloomberg

The 10Y tested above 1.60% once again but could not hold it…

Source: Bloomberg

The dollar oscillated around in a tight range today ending unchanged…

Source: Bloomberg

Loonie at 4 year highs…

Source: Bloomberg

Crypto was modestly higher today, but ETH traded in a narrow range, unable to make a new record high… for a change…

Source: Bloomberg

Oil prices hit a new cycle high before WTI tumbled back below $65 (despite a big surprise crude draw) as perhaps weaker than expected product demand raises red flags. Also on a technical note, today saw the stops run from OPEC’s spike…

Lumber surged above $1600 today – a new record high – and is rapidly heading towards surpassing gold (for the first time since 2004)…

Source: Bloomberg

And while Commodities continue to charge higher (Spot Ag at its highest since Oct 2012), Cocoa is bucking the trend amid a period of oversupply at a time when the pandemic is hurting global chocolate demand…

Source: Bloomberg

Gold managed to hold on to gains today with futures hovering around $1780 (unable to break $1800 once again)…

And while LME Copper nears $10,000 (and its record highs from 2011), Zambia – which relies on the metal for 70% of its export earnings – is not seeing the benefits as the Kwacha collapses to a new record low (against the USD)…

Source: Bloomberg

Finally, we note that 5Y Breakevens pushed to their highest since 2006 today…

Source: Bloomberg

But, of course, this is all just transitory.

Tyler Durden
Wed, 05/05/2021 – 16:00

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