Daily Financial Markets Chart Wrap

Highlights:

  • Testing the lows seems like an apt description of the action today in global stocks
  • The weakness started in Japan with the Topix off 1.7% and then permeated Europe and culminated with the US market down about 2.6%
  • Health Care (-2.8%), Energy (-3.6%) and Materials (-2.5%) led the selloff today as Utilities and Staples were the only two global sectors to finish down less than 1%
  • DM Knowledge Leaders hung in there amid the selling as they finished down 1.4% versus the MSCI World Index -2.2% performance
  • EMs finished stronger than DMs on the day, which is turning out to be an odd divergence with EMs not breaking their August lows just yet
  • Bonds were bid in sympathy with the selloff in stocks, but not to the degree would think given the magnitude
  • The US 10Y was down about 7bps while the 30Y was down about 8bps
  • The dollar was weaker on the day too selling off against the yen (-.75%) and the euro (-.45)
  • Copper was again beaten down and it now sits pat on its August low level
  • WTI finished down almost 2%, but hung in fairly given the selling in energy stocks that took place

Gavekal Capital Daily Financial Markets Chart Wrap