Friday, April 04, 2025

Stocks Plunging into Afternoon on China's Trade War Escalation, Global Growth Fears, Surging Global Debt Angst, Tech/Commodity Sector Weakness

Broad Equity Market Tone:

  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Very Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 42.2 +40.8%
  • S&P 500 Intraday % Swing 3.4 +118.6%
  • Bloomberg Global Risk On/Risk Off Index 40.6 -20.4%
  • Euro/Yen Carry Return Index 180.88 -.7%
  • Emerging Markets Currency Volatility(VXY) 9.6 +2.2%
  • CBOE S&P 500 Implied Correlation Index 41.2 +22.9% 
  • ISE Sentiment Index 83.0 -28.0 points
  • Total Put/Call 1.35 +17.4%
  • NYSE Arms .91 -33.6%
  • NYSE Non-Block Money Flow -$189.2M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 72.4 +8.7%
  • US Energy High-Yield OAS 499.3 +12.4%
  • Bloomberg TRACE # Distressed Bonds Traded 259.0 +19.0
  • European Financial Sector CDS Index 84.1 +15.0%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 189.7 +14.5%
  • Italian/German 10Y Yld Spread 119.0 basis points +7.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 95.8 +7.3%
  • Emerging Market CDS Index 211.9 +8.0%
  • Israel Sovereign CDS 109.8 +11.5%
  • China Corp. High-Yield Bond USD ETF(KHYB) 23.69 -.86%
  • 2-Year SOFR Swap Spread -21.0 basis points -2.0 basis points
  • 3M T-Bill Treasury Repo Spread -9.5 basis points -4.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -4.25 -4.5 basis points
  • MBS  5/10 Treasury Spread 147.0 +1.0 basis point
  • Bloomberg CMBS Investment Grade Bbb Average OAS 616.0 +13.0 basis points
  • Avg. Auto ABS OAS 60.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.6 -.9%
  • 3-Month T-Bill Yield 4.27% -2.0 basis points
  • China Iron Ore Spot 97.6 USD/Metric Tonne -3.0%
  • Dutch TTF Nat Gas(European benchmark) 36.4 euros/megawatt-hour -7.2%
  • Citi US Economic Surprise Index -3.3 +3.9 points
  • Citi Eurozone Economic Surprise Index 14.6 -2.8 points
  • Citi Emerging Markets Economic Surprise Index 3.1 -.7 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(18 of 500 reporting) +7.5% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 278.42 -.02:  Growth Rate +13.4% unch., P/E 18.6 -1.0
  • S&P 500 Current Year Estimated Profit Margin 13.58% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 418.68 unch.: Growth Rate +21.1% unch., P/E 25.2 -1.5
  • Bloomberg US Financial Conditions Index -.39 -48.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.13 -18.0 basis points
  • US Yield Curve 31.5 basis points (2s/10s) -1.5 basis points
  • US Atlanta Fed GDPNow Q1 Forecast -2.8% +.9 percentage point
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 45.4% +6.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.68% unch.: CPI YoY +2.49% unch.
  • 10-Year TIPS Spread 2.18 -12.0 basis points
  • Highest target rate probability for June 18th FOMC meeting: 67.7% (+4.9 percentage points) chance of 4.5%-4.25%. Highest target rate probability for July 30th meeting: 64.0%(+14.2 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -1,100 open in Japan 
  • China A50 Futures: Indicating -529 open in China
  • DAX Futures: Indicating +189 open in Germany
Portfolio:
  • Slightly Lower: On losses in my consumer discretionary/industrial/tech/financial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to Market Neutral

No comments: