First the good news: for the first time in a week, there were no overnight limit up/down trigger halt in the S&P500 future.
Now, the not so good news: the global dollar margin call/short squeeze escalated even more overnight, resulting in total chaos in Asia, as multiple regional indices hit circuit breakers, the Korean Kospi was halted after falling more than 8%, Indonesian stocks triggering limit down at 5% and the Philippines market reopened only to drop 24% on the open triggering a circuit breaker. The panic dollar scramble also led to a flash crash in the Aussie, Kiwi and various other EM currencies as reported overnight.
Worse, this happened even as the Fed stepped in with yet another Lehman-era facility, a Money Market backstop (MMLF), which however did nothing to convince panic-stricken equity markets that a coronavirus-driven global recession could be averted, or to ease the record $12 trillion dollar funding squeeze, as measured by the surge in the FRA/OIS…
