Daily Financial Markets Chart Wrap

  • Choppy day for global stocks as overnight weakness out of Japan was met with mixed review in Europe that dragged US stocks down until the European close, with they subsequently rebounded for a nice gain of .5%
  • Sector leadership, including the after hours session had Energy, Materials and Industrials lower and Utilities and Health Care higher even as intraday leadership was reverse
  • Still, in the US the biggest 1 day winners were all in the late cyclical groups
  • Volkswagen finished down a cool 18%
  • Over the last year, sector leadership continues to be Health Care, Discretionary, Tech and Staples with Energy the clear laggard despite the oversold bounce off of the 8/25 low that has faded
  • The VIX turned back around today to finish at the important 20 level
  • EMs were down 1.8% on the day as Asia gave back Friday’s gains which permeated throughout European session
  • DM Knowledge Leaders underperformed by about 9bps while EM Knowledge Leaders outperformed by about 50bps
  • Over the last year Developed World and Emerging Markets Knowledge Leaders have bettered DM and EM stocks by 7.2% and 7.6%, respectively
  • Over the last year, DM stocks are down 6.5% and EM stocks are down 22.9%
  • Rates sold off today, including after hours, led by the US and Canada
  • The USD was strong on the day as gained ground on the euro, yen and pound following Fed comments over the weekend
  • Energy gained back some of Friday’s lost ground with WTI up 5.3% and Brent up 4% as gold gave back a portion of its gains over the last week

***New today: tables showing performance of Knowledge Leaders, commodities, FX and rates***

Gavekal Capital Daily Financial Markets Chart Wrap