Defying Gravity…The markets are “through accepting limits cause someone says they’re so…(h/t Idina Menzel).” Despite second wave corona concerns peppering headlines over the weekend, US markets moseyed their way back into positive/neutral territory over the course of this quiet (volume-wise) Monday. The move was already heading from bottom left to top right before Citigroup’s U.S. economic surprise index was revealed to have surged to the highest level since 2003 inception, and before Reuters reported the U.S. will allow American companies to work with Huawei to develop standards, despite its blacklisting. Not to mention the 2pm announcement that The Fed’s going to buy a broad based portfolio of US corporate debt. That’ll do. The leaderboard includes tech and consumer discretionary, as well as oil, which reversed early losses. This week there are an array of potential wrenches to be thrown into the mix, ranging from retail sales to quad witching, but the way things have been going it seems fighting the tape (or The Fed) is in not in anyone’s best interest.
The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.
Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.