Daily Financial Markets Chart Wrap

Highlights

  • Despite strength throughout most the trading day, US stocks could not keep it together and ended up giving back the entirety of an almost 1% move
  • Europe and Japan both finished up considerable, however, with Germany and France up just shy of 1% and Japan up about 1%
  • All in all DM stocks were up about 50bps with Utilities and Staples the standout leaders and Health Care being taken out on a stretcher thanks to some big moves in the of the riskier biotechs
  • While US stocks are still some way off of their 8/25 lows, global stocks are right back there testing those important lows, something we’ll be watching very closely over the coming days
  • Off of the important 8/25 low, Tech is avialing itself as the standout leader with Materials, Telecom and Financials the clear losers
  • Importantly, Energy continues to give back the gains it achieved from its bounce from 8/25
  • While Energy and Industrials are not at the bottom of the pack, the mere fact that the industrial cyclical complex is not leading the charge off of the 8/25 low tells us something about the health of the global economy and China in particular
  • EM stocks were also higher on the day led by Utilities, Staples and Financials with Energy and Health Care the only two sectors to finish in the red
  • Brazil was particularly strong as it finished up more than 5% on the day thanks to central bank jaw boning
  • DM Knowledge Leaders picked up about 45bps relative to the MSCI World Index while EM Knowledge Leaders gave back about 60bps relative to the MSCI EM Index
  • Both Knowledge Leaders indexes have bested their benchmarks by about 7% over the last year
  • Government bonds sold off on the day across the board, but only modestly
  • The USD was flat as it gained 84bps against the euro but was 1% weaker versus the yen
  • Over the last year the DXY dollar index is still up about 13%
  • Energy was strong on the day with oil up about 2% and nat gas up 1.3% but the real story continues to be the weakness in copper, which is just a sliver away from breaking its August low, something that would only serve to confirm the weakness out of China

Gavekal Capital Daily Financial Markets Chart Wrap

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