@MANTRA $MANTRA
๐ฅ Wednesday's ceasefire news triggered some of the most violent market moves in decades.
The numbers speak for themselves:
๐ข๏ธ Brent crude: biggest 1-day DROP since the Gulf War in 1991 (ex-Covid)
โ๏ธ European travel & leisure stocks: biggest 1-day JUMP since 2022 Russia-Ukraine de-escalation
๐ EM equities: +5.5% in a single day โ best since March 2020
๐ญ Global industrials: +5% in a single day โ also best since March 2020
๐ป Semiconductor stocks (SOX index): rallied to NEW HIGHS
๐ฎ๐น Italian 2yr govt yields: -28bp in a single session
๐ Dubai real estate index: +13% on Wednesday
This wasn't a relief rally. This was a proper SHORT SQUEEZE across every pro-cyclical asset class simultaneously.
Pain trades everywhere. And it all happened in one session.
The magnitude of moves tells you something important: markets had been positioned EXTREMELY defensively. The unwind was violent precisely because the positioning was so one-sided.
๐ญ My View: The snap-back is impressive but don't mistake speed for sustainability. Oil will stay structurally higher for weeks, inflation is still rising, and Hormuz is not fully open. The squeeze is real. The fundamentals haven't all cleared.
#CreditMarkets #EUR #Ceasefire #RiskOn #FixedIncome
๐ฅ Wednesday's ceasefire news triggered some of the most violent market moves in decades.
The numbers speak for themselves:
๐ข๏ธ Brent crude: biggest 1-day DROP since the Gulf War in 1991 (ex-Covid)
โ๏ธ European travel & leisure stocks: biggest 1-day JUMP since 2022 Russia-Ukraine de-escalation
๐ EM equities: +5.5% in a single day โ best since March 2020
๐ญ Global industrials: +5% in a single day โ also best since March 2020
๐ป Semiconductor stocks (SOX index): rallied to NEW HIGHS
๐ฎ๐น Italian 2yr govt yields: -28bp in a single session
๐ Dubai real estate index: +13% on Wednesday
This wasn't a relief rally. This was a proper SHORT SQUEEZE across every pro-cyclical asset class simultaneously.
Pain trades everywhere. And it all happened in one session.
The magnitude of moves tells you something important: markets had been positioned EXTREMELY defensively. The unwind was violent precisely because the positioning was so one-sided.
๐ญ My View: The snap-back is impressive but don't mistake speed for sustainability. Oil will stay structurally higher for weeks, inflation is still rising, and Hormuz is not fully open. The squeeze is real. The fundamentals haven't all cleared.
#CreditMarkets #EUR #Ceasefire #RiskOn #FixedIncome