The everything rally turns into a bond rally [Video]

The central bank doves are forcefully back following a significantly lower-than-expected US JOLTS print, and on the back of a surprisingly dovish comment from an otherwise… hawkish Isabel Schnabel from the European Central Bank (ECB).

Due today, the ADP is expected to print 130K private job additions in the US last month, and the Atlanta Fed’s GDP forecast is expected to hint at a sharp decline in Q4 growth to 1.2% from above 5% printed last quarter. If that’s the case, the Fed doves will remain in charge of the market, but the everything rally will likely turn into a… bond rally as we are now at a juncture where the bond optimism might only persist with increased recession probabilities, which doesn't bode well for equity appetite.

The S&P500 closed slightly lower, gold saw support near $2000 per ounce and the EURUSD slipped into the bearish consolidation zone after clearing a critical Fibonacci support.

Crude oil remains sold in a lower-highs-lower-lows pattern and the Chinese CSI 300 sinks to the lowest levels in almost 5 years after Moody’s lowered the country’s sovereign outlook.