After opening higher in defiance of continuing EM weakness, US stocks turned tail and the S&P closed 0.4% lower. European markets shed 0.4% as well, the MSCI world dropped -0.8% while EM diversified dropped another 1.6%. Financials were mostly weaker with Deutsche Bank dropping -2.5%, Unicredit -2.6% and BoA -2.3%. E. Musk said his ‘Funding Secured’ claim was sparked by a Saudi Meeting. Chances are it might not suffice to exculpate him from stock price manipulation claims (although he may ultimately find a way to take the company private). Investors started the week with Turkey’s President Erdogan remaining defiant toward both the US, heightening contagion fears. The fact that the early day rally faded had some investors concerned that Turkey risk is increasing toward a bigger event through contagion. As the Argentine peso reached new lows, the central bank of Argentina showed its determination by unexpectedly hiking rates by 5%, bringing the seven-day notes to a record 45% and pledging to keep it there at least until October. By so doing, the central bank did yesterday what the Central Bank of Turkey (under the influence of the Turkish President) still fell short of doing, hiking rates to combat currency depreciation. Turkey did take series of measures that helped alleviating some of the pressure yesterday but the measures were still deemed too little too late by some analysts and USDTRY closed higher again, albeit off its best levels of the day around 6.90. The central bank in Ankara lowered the amount commercial lenders must park at the regulator. While there was no mention of higher interest rates or currency control just yet, it was also said that all options remained on the table. The Bloomberg dollar index gained 0.1% with EURUSD closing largely unchanged at 1.1420. US and German 10-year bonds closed unchanged and gold dropped 1.5% on fears that some of it could be sold for currency intervention purpose. Italian 10y BTP yield added 11bps. German economic minister told Bild that the world is on the brink of all-out economic war from which no one will come out ahead: "we are just a few yards from the edge,” and “a global trade war would not know winners, only losers." German businesses can continue to invest as much as they want in Iran," Altmaier also said, noting that the rest of Europe and other countries across the globe should feel free to defy the Washington ban. Others argue that the (crazed) American rulers are pushing the world to the brink… The speed and extent of the EM carnage offered another illustration (after the fang shares a couple of weeks ago) of the structural problem markets are also confronted with iwhicj s often a lack of liquidity when sentiment turns which leads to important gaps on little volumes. 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