Trade-Talks are on again... on like Donkey Kong if markets are to be believed.

So to explain what happened today, the following chart should help (trade accordingly):

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h/t @StockCats

Which brings to mind...

Chinese stocks opened dramatically higher but faded into the close of the afternoon session...

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Source: Bloomberg

European stocks soared also, led by Germany (trade hopes) on the day...

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Source: Bloomberg

German 30Y Yields broke back above 0.00% for the first time in over a month...

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Source: Bloomberg

US equity markets were all higher on the day, smashing above Trump tariff tantrum levels...

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And as futures show, the bulk of the gains overnight...

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Notably, today's buying extravaganza lifted the S&P back to unchanged since The Fed cut rates in July...

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All the majors crossed above key technical levels today (Russell 2000tagged its 200DMA but was unable to hold above it)

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Cyclicals dominated as the odds of a China trade deal surged...

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Source: Bloomberg

Shorts were dramatically squeezed yet again...

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Source: Bloomberg

And then there was Slack which crashed over 10% after cutting guidance but was panic-bid back to unchanged after the open...

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Bonds don't seem to be buying it though...

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Source: Bloomberg

Treasury yields surged today with the long-end modestly outperforming (30Y +8bps, 2Y +11bps)...

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Source: Bloomberg

NOTE - between a record-high $74 billion calendar (rate-locks), Fed POMO bid disappearing due to "technical difficulties", trade-deal hopes, and the better-than-expected ISM services data (despite everything else being weaker)

Today was among the biggest absolute spikes in 10Y (above 1.50%) and 30Y (above 2.00%) Yields since the election in 2016...

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Source: Bloomberg

NOTE - after the initial spike, yields rallied back lower.

The yield curve steepened on the day but 3m10Y remains deeply inverted...

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Source: Bloomberg

The dollar ended the day lower, but roundtripped off overnight lows...

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Source: Bloomberg

Yuan is higher overnight but well off the highs, notably divergent from US stocks...

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Source: Bloomberg

Cryptos were mixed with Altcoins fading but Bitcoin stable...

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Source: Bloomberg

Commodities were mixed with copper best, crude pumped-n-dumped, and PMs weak after the PMI data...

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Source: Bloomberg

Gold was hit on very heavy volume...

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But silver was worse...

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Sending Gold/Silver higher for a change...

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Source: Bloomberg

Oil pumped and dumped today after inventory data spiked it up to 5-week highs briefly...

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Finally, we should note that while the market has pushed for more and more easing in recent weeks, since The Fed first cut, the macro-economic data has beaten (admittedly low) expectations dramatically...

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Source: Bloomberg