- US stocks fall most since June
- GE cuts revenue view
- Reuters: Euro zone officials say exploring sharing losses on legacy assets between ESM and governments
- Canada Sept CPI 1.2% y/y exp vs 1.3% exp
- US Sept existing home sales 4.75m, as expected
- Balearic Islands and Asturias ask Spain for bailouts, fund almost dry
- Monti: Worries over Italian debt eased
- SNB’s Danthine says franc may correct ‘with time’
- Russia Sept GDP 2.5% y/y compared to 2.8% in Aug
- Deadly car bomb in Beirut
- Jamie’s 1987 crash memoir
- USD leads, CAD lags
- S&P 500 closes down 1.7%
- US 10 year notes fall 6 bp in yield to 1.77%
Crushing day in the stock market but FX took it rather well.
EUR/USD perked up to 1.3064 in early trading and was held up by a large 1.3050 option at the NY cut. Afterwards, the pair slid as low as 1.3012, bottoming minutes before Europe shut down.
Cable rebounded early from bids ahead of the European low but stalled ahead of offers at 1.6067. Stops were triggered below 1.6032 but a dip below 1.6000 encouraged a collective shrug.
AUD/USD fell below the 200-day moving average after breaking it earlier in the week but was surprisingly steadfast after bottoming at 1.0318 even as stocks continued to wilt.
USD/CAD was the move in North American trading. Canadian CPI figures emphasized the futility of the BOC’s hiking bias and this pair has been the most-sensitive to stocks all year. The gains all came in the morning but stalled ahead of the key 0.9750 level.
Gold fell to a six-week low of $1716. Oil down $2 to $90.09.
Today’s trading in stocks reminds me of something Gartman said: at the end of a bull market, the first thing that happens is that the generals are dragged out and shot. The generals are the leaders of the rally and with Google and Apple down 13% from their highs, you have to wonder.
