Small Cap Stocks Suffer Worst Week In 18 Months As Retailer Rout Returns, Credit Crashes

By Tyler Durden

Blame The Russians, The Chinese, The North Koreans, and The Welsh… but not The Fed…

Overnight saw more China turmoil.. (MSCI China ETF saw its biggest drop since Brexit)

With China ‘VIX’ spiking to 2017 highs…

Then Europe followed through with Corporate credit markets crashing by the most in 18 months…

The cost of insuring against non-payment jumped the most this week since February 2016, when the oil price slump heightened default risks of energy companies and their bankers.

And while stocks bounced today in US, the week was not pretty.

Summary:

Dow’s worst week in 5 months (Mar ’17)
S&P’s worst week since pre-election (Nov ’16)
Russell 2000 worst week since Feb ’16
Financials worst week in 5 months
VIX biggest percentage spike since Aug ’15 (China Deval)
HY Credit Risk biggest jump since election (Nov ’16)
Silver’s biggest week since Jul ’16
Gold’s biggest week since Apr ’16
Ofshore Yuan’s best week in 7 months (Jan ’17)

Russell 2000 was the week’s biggest loser (worst week for Small Caps since Feb 2016); Nasdaq is down 3 weeks in a row (worst week in last 7)

As Small Caps outperformance since the election has been erased…

Nasdaq was unable to break back above its 50DMA…

But …read more

Source:: ZeroHedge