The Morning After: Everything Is Up... More

If there was any doubt whether fundamentals still matter (they don't, and in fact the worse the economic data, the better for risk) or what is the only driver of global performance (central-planners), they can all be put to rest following Bernanke's surprise announcement from yesterday which may have sent US stocks to record credit-bubble highs, and global asset soaring, but it also confirmed that the Fed literally makes up monetary policy as it goes along. As the recap below shows, a one-word summary of what has been bought this morning: everything.



  • S&P 500 futures up 0.5% to 1725.7

  • Stoxx 600 up 0.9% to 316

  • US 10Yr yield up 2bps to 2.71%

  • German 10Yr yield down 9bps to 1.91%

  • MSCI Asia Pacific up 2.1% to 141.7

  • Gold spot down 0.1% to $1362.8/oz


EUROPE



  • 17/19 sectors rose, led by basic resources, autos; telcos  underperformed

  • Biggest Gainers: Polymetal +11%, Ashmore +8.7%, Randgold +7.8%, Aberdeen Asset +6.5%, Lonmin +6%, Fresnillo +5.9%, Antofagasta +5.5%, Banco Popular +5.2%


ASIA



  • Asian stocks also rallied following the Fed’s decision.

  • MSCI Asia Pacific up 2.1% to 141.7

  • Nikkei 225 up 1.8%, Hang Seng up 1.7%, Kospi down 0.4%, Shanghai Composite up 0.3%, ASX up 1.1%, Sensex up 3.3%

  • All sectors rose, led by materials, finance, telcos

  • Japan July All Activity Index Rises 0.5% M/m; Est. +0.3%

  • Gainers: Bumi Serpong Damai +16.1%, Lippo Karawaci +13.4%, CP ALL PCL +12%, Zhaojin Mining Industry +12%, Reliance Communications +11.8%, Zijin Mining +10.4%, Adani Enterprises +10%, Bank Negara Indonesia Persero +9.5%


FX/BONDS



  • Euro up 0.26% to $1.3556

  • Dollar Index down 0.11% to 80.15

  • Italian 10Yr yield down 8bps to 4.32%

  • Spanish 10Yr yield down 4bps to 4.36%

  • 3m Euribor/OIS little changed at 13bps


COMMODITIES



  • S&P GSCI Index up 0.9% to 651.7

  • Brent Futures up 0.4% to $111/bbl, WTI Futures up 0.8% to $108.9/bbl

  • LME 3m Copper up 1.9% to $7321.8/MT

  • LME 3m Nickel up 1.9% to $14189/MT

  • Wheat futures up 1.2% to 654.3 USd/bu

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