top of page

Daily Close

US Stocks gained across the board with the S&P adding +0.9% (check Teck, Equity sector performance), boosted by a rally in financials which responded to higher bond yields. Tech stocks did not look back either and all indices got out of their Bollinger band. To temper yesterday’s enthusiasm, some analysts noted that 100% of the S&P500 gains so far this year came from Microsoft and Apple only, making the strength of the US equity market fairly narrow. With technicals remaining buoyant, investors will now shift their focus on next week’s ECB and Fed policy meetings and on the outcome of this week end G7 meeting for more cues on the trade and monetary fronts. Bonds were broadly weaker yesterday with 10y US yields climbing 3bps (to 2.97%) while European government bonds were hit harder on both core and peripherals, adding +10bps.

The Italian political situation stands out as the (only?) hurdle preventing the beginning of a normalization process in Europe. However, with last week’s 5 sigma disconnecting event between Bunds and BTP’s fading somewhat, and with many bond underweights taken out in core Europe, the odds of a further bond market correction and of the beginning of a long awaited normalization leg in core European bonds seem to be increasing.

China said it would offer to buy more US products. European leaders said they would talk one to one with D. Trump…for what it is worth as Europe seems now geared for a clash with D. Trump. 

With active management facing strong headwinds this year, UBS is said to be cutting jobs at its asset-management unit to focus on growth in China, passive and sustainable investing. At the same time, UBS CEO Sergio Ermotti said investors shouldn’t take fright after political turmoil in Italy sent tremors through global financial markets. “We are recommending clients to still be in the market”. That is what passive and “sustainable” investing is all about...

This is an abbreviated version of our premium subscription based report. For a more detailed global markets commentary, a comprehensive suite of market reports with global tactical model portfolios and daily insight, join a free free trial to our premium research or contact us. Discounts may apply for both private and professional subscription plans. BentinPartner Advisers, Basel Important Disclaimer © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog.  #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets 

2 views0 comments

Recent Posts

See All
bottom of page