Rates as of 0500 GMT

Market Recap

A big day of reversals in equity markets but not so much in FX.
On Monday my equity screens were a sea of red; indicating lower prices; today its a sea of green, indicating higher except this mornings Hang Seng index. The US market had a broadbased recovery, with 451 of the 500 SP index companies moving higher. Cyclical industries, such as capital goods 3.2, consumer services 2.7 and banks 2.6 were the bestperforming industries. So Mondays fears became Tuesdays buying opportunities.

However not all the fear about the virus has dissipated, apparently. Peloton Interactive continued to outperform Planet Fitness, although Planet Fitness did recover somewhat.

Bond were mixed.

Just as Mondays selloff had no specific trigger, yesterdays buying didnt either just the usual buy the dip mentality that has served investors so well over the last 10 years. So theres unfortunately little to say about such dramatic moves

For we, which now behold these present days
Have eyes to wonder, but lack tongues to praise.

Oil prices fell after the American Petroleum Institute API reported an increase in inventories of 806k barrels during the latest week. Not much, but the market had been expecting a decline of 4.5mn barrels, so very different from expectations.

Of course the two dont always agree as the regression line shows, the API data tend to show less of a move than the Department of Energys data, and often 24 of the time the two dont even…