Markets in total panic mode once again


All four major US equity benchmarks opened circa 7% lower on Thursday, which immediately led to a 15 minutes halt in trading as circuit breakers were triggered. After the stop, indices surged sharply, but failed to hold those gains and are now slowly (or rather quickly) dropping toward daily lows.

In the FX land, it looks like there was an intervention in the USDJPY pair (most likely by the Bank of Japan) as the pair soared 200 pips in an extreme risk-off environment, which seems very unlikely given the current market conditions. 

Elsewhere, the dollar was bid actively, with the EURUSD pair down 1.3%, GBPUSD pair down 1.7%, and Australian dollar down nearly 3%, trading at its weakest since the financial crisis.

Chaos was seen in the commodity markets as well, with gold plunging 4% to 1,570 USD (again, bizarre behavior in this risk-off environment), oil was down 5%, and silver puked nearly 6%. 

US Treasurys were bid, and the yield on the 10-year benchmark fell to 0.7%, a 20% daily decrease. This looks much worse than the post-Lehman in 2008...
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