Gold Soars As Draghi “Dud” Unleashes Chaos In Bonds, Stocks, & FX

Gold Soars As Draghi “Dud” Unleashes Chaos In Bonds, Stocks, & FX

Tyler Durden’s pictureSubmitted by Tyler Durden on 03/10/2016
http://www.zerohedge.com/news/2016-03-10/gold-soars-draghi-dud-unleashes-chaos-bonds-stocks-fx

"You get nothing…"

 

This was not the day many had planned on…After the initial "as expected" move, everything went pear-shaped for the central planners when Draghi committed the ultimate sin – closing an open-ended monetary policy…

 

The USD was hammered, gold surged, and stocks and oil gave up gains…

 

Then The PPT stepped in to save the world, ramped us back to VWAP…

 

And Dow back to 17,000…unfriggingbelievable!!

 

*  *  *

Surveying some of the damage (that was unable to benefit from US manipulation)…

Let's start with the worst…EURUSD screamed almost 400 pips off the post-Draghi lows…

 

As Bespoke notes, today is the largest positive reversal (3.2%) off an intraday decline of at least 1% in the history of the Euro.

 

We could show all kinds of epic fail European markets, but Italian banks – with their exploding NPLs – are the best example. After smashing to a halt limit-up, they fell back to earth to practically unchanged by the close…

 

*  *  *

After yesterday's idiotic ramp to perfectly end Dow at 17000, things went a little bit turbo today…until the late-day re-emergence of America's own National Team…

 

The plunge stalled when Europe closed – went sideways – then ripped higher to unch as NYMEX closed…to get the S&P 500 perfectly unchanged!

 

Look at the utter panic VIX slams to get Dow back to 17,000 (just like yesterday)…

 

As Shorts were once again squeezed…

 

Treasury yields all rose on the day (with the belly underperforming and 30Y outperforming after a strong auction all the way back to yields lower on the week)…

 

Dragged higher in yield by Bund weakness (as Draghi disappointed expectations for the rate cut)

 

Early in the day, the TSY yield curve collapsed to its lowest since Dec 2008…

 

Not boding well for the Dimon Bottom?

 

The USD Index was monkey-hammered as EURUSD's initial drop exploded into an avalanche of short-covering… The biggest daily drop in over a month..

 

Gold ansd Silver outperrformed on the day as crude and copper slipped lower…

 

Gold recovers its quintuple whammy slams…

 

And oil rallied back as Europe closed for absolutely no good reason at all…

 

Finally, Oil Vol remains notably "cheap" relative to equity protection (for now)…

 

Charts: Bloomberg

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