JP Morgan can’t imagine a more ‘ugly morning’ as global markets imploding

Just one day after Federal Reserve Chairman Janet Yellen spoke before Congress to answer questions on the state of the economy, global markets continued their acceleration downward as stocks, currencies, oil, and banks not only show signs of capitulation, but in the words of JP Morgan’s Adam Crisafulli, he can’t imagine a more ‘ugly morning’.

S&P 500 futures down 1.8% to 1814
Stoxx 600 down 3.4% to 304
FTSE 100 down 2.6% to 5525
DAX down 2.9% to 8760
German 10Yr yield down 7bps to 0.18%
MSCI Asia Pacific up 0.1% to 117
Hang Seng down 3.8% to 18546
S&P/ASX 200 up 1% to 4821
US 10-yr yield down 5bps to 1.62%
Dollar Index down 0.42% to 95.49
WTI Crude futures down 2.9% to $26.65
Brent Futures down 1.7% to $30.31
Gold spot up 3.5% to $1,242
Silver spot up 2.8% to $15.80

It’s hard to imagine an uglier morning. The two things markets hate most right now (neg. central bank rates and bad bank headlines) occurred overnight as the Riksbank dropped its rate further into neg. territory and SocGen put up bad earnings/guidance.

The combination of those two events, coupled w/very fragile sentiment, extreme risk aversion (a function of enormous P&L destruction YTD), Yellen’s testimony (which wasn’t sufficiently dovish or concerned about financial market volatility from the perspective of markets), and CSCO’s cautious macro commentary, are weighing very hard on equities so far Thurs morning.

The main Eurozone indices (SX5E and SXXP) are both down “3% today, “6% WTD, and —16% YTD. The SX7P Eurozone bank index is off >5% today, —10% WTD, and nearly 30% YTD.

Ironically, some of the worst carnage in months is occurring while China is shut and the Yuan has been rallying (the CNH has been creeping higher over the last few days, albeit on very thin volumes). – Zerohedge

The one big winner today is the precious metals, which have climbed over 3% each in gold and silver prior to the open of U.S. markets.  And with Dow futures down close to -300 before the open, there is little ‘good news’ out there to expect this will recover without vast intervention by the ESF, or by some stick save in Yellen’s conference with the Senate later today.


Today’s market bloodbath is not an anomaly, and has been building since the start of 2016 when the markets closed in the red for the first seven trading days of the year.  And whether this is an indication of a bear market, or something much greater, smart money is leaving the rigged Wall Street casinos and rushing headlong into any safe haven investors can find.

Kenneth Schortgen Jr is a writer for,, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

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