Today we look at a relatively ugly day for the market, although the huge ugly sell-off in US regional banks was only one aspect bringing down overall sentiment, which looks suddenly rather shaky relative to what was a modest decline in the major indices. From a fresh big rally in US treasuries to a considerable spike in the VIX and crypto turning south once again, this market looks terribly nervy even as AI deal noise kept sentiment bubbly in places. Today's weekly close looks important for how sentiment shapes up as earnings season hits full stride next week even if it might be trumped by geopolitics, as discussed on today's pod, which is hosted by Saxo Global Head of Macro Strategy John J. Hardy.

Today's links:

Brad Setser on what China is doing with its surpluses on Monetary Matters podcast, as well as its shock to the world and whether it has been the big gold buyer of late.

Henry Gao on X - one worth following on understanding China's moves here.

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