At 7 AM Friday morning all markets began to have a panic attack.
Dow futures down 150, WTI oil heading to $35 barrel, US 10-year nearing 2.01%, and the US dollar spiking higher.
Directionally that’s a full-blown retreat across the board for the upcoming US rate hike.
The question is why now? Did markets just come to grips with the move?
Well as I wrote yesterday, the BRICS currencies and economies are in trouble and we are in the midst of a currency war.
China lowered its dollar peg to the renminbi last night, despite it wishing to be in the SDR basket.
This latest move shows me that the yuan is not ready for prime time just yet. Loose the dollar peg and have a free float and get back to us in a year to see what its worth.
In any case, take a look at Europe equities and the US markets have at least another 180 Dow points down to equal the losses across the pond.
It appears to be capitulation day, throw up on the market and see what the weekend brings.