Overview: Relative performance of EM and cyclical based economies are not confirming a bottom in growth EM currencies are not showing similar strength to the economic bottom in 2016 Copper, aluminum, steel, and auto PMIs are also not confirming the pick up in growth that equities are Given these divergences, the probabilities of the dollar…
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Global equities rose 2.1% over the past week on the back of US leadership, with the S&P and Russell rising 2.5% and 4.3%, respectively. Europe (+2.9%) and Japan (+3.3%) were also notable gainers, but Asia ex Japan lagged, with China finishing roughly flat and Emerging Markets in the red. Breadth was strong in both the…
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Global equities were 30bps lower last week, with weakness concentrated in Europe, Japan, and Latin America. US equities finished marginally higher, rising 15 bps, while frontier markets were the best performer (+2%). Sectorally, US tech led the way along with global defensives, while cyclicals lagged. US HY spreads were higher across the board, led by…
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Global equities rallied in week 5 on the back of a dovish Federal Reserve — with Asia, Latam, and EM all rising 4%+. Technology and real estate were notable standouts, while financials lagged following a move lower in global rates. The dollar was down 75bps, with significant weakness against Latam, as well as AUDUSD. Crude,…
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Week four saw global equities marginally higher (+21bps), with strong gains from China (+1.98%), EM (1.56%) and Europe (+1.18). In Asia, South Korea and Thailand were both notable standouts (+3%), while the America’s lagged (SPX -26bps). Technology was again a strong performer on the back of semi and hardware strength, while defensives and energy lagged….
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Global equities were higher for the fourth week in a row, with gains concentrated in the US and Asia. Cyclicals were bid across the board, led by fins following positive earnings reactions. While cyclicals were strong, cyclical based currencies and rates did not confirm, such as the AUDUSD and China’s 10yr, which were both lower…
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Global markets were bid in week two rising 2.4%, led by the Americas (IWM +4.73%, ILF +3%) and Asia Ex Japan (2.9%). Sectorally, technology was strong across the board, with Asia tech +6.7% w/w. Energy was bid on the back of crude’s 7.6% gain, and industrials were notably higher. While markets have started off the…
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Below is a piece we put together about a month ago that was sent around to our network. Given recent market action and the thesis still largely playing out, we decided to share it, which we are likely to do more of in the future. If you like the work below, feel free to subscribe…
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