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Germany outperformance helping Europe recover as World index hits highest since Aug '15

Drop of -0.5% in Non Farm Productivity this am, vs +0.4% expected and up 2% in Unit Labor Costs bettering the 1.8%. Meanwhile. minor gains in US futs, while Europe extending gains again up 0.70% while DAX breaking out of a 1 year downtrend and moving up officially 20% off Feb lows, which will cause many media to label this a new Bull market, but the key is the trendline breakout which in fact IS important for Europe and along with European Bank progress, should help to keep rally higher a bit longer.  MSCI AC World index extending now for 4th straight day and BofA's Market Risk index at lowest level since the start of the year as Volatility reaches very low levels.  Currency wise, PoundSterling slipping to new 4-week lows while Gilt yields hitting new all-time lows under 0.60% briefly, and Spanish 10s dropping further under 1%.    Overall, Despite some lift lately in US, German yields lifting a bit, most of the world still seems to be dropping and still a very mixed economic picture as equities continuing to gain ground with Volatility at very low levels-  For today, key will be 2183-5 for S&P futs then 2188-90 while 2171 initial support, 2167- Premkt movers: Advancing:  HIIQ, ALDX, MWW, REN, ENDP, VRX, OPK, KNDI while on Downside: GPS, IAG, ARRY, TSE, MNKD, BGS, WING, COH, MTW-   Look to stay long, buying dips with thoughts of US Equities following Europe higher

Global equities, as per MSCI All World index, now at highest since LAST AUGUST, as signs of a giant base breakout appear to be underway.  While sentiment, breadth need to be watched carefully, this IS a constructive pattern since last year in the short run

 

BofA Merrill's Market risk index meanwhile hitting lowest levels since January, as equities trend higher while yields and volatility drop

 

DAX- German's index will certainly start to get more media attention in the days ahead, mostly for this now being labeled a "BULL MARKET", having risen nearly 21% off its Feb lows-  From a technical perspective, even more important, is that this 15 month downtrend is being exceeded along with the entire series of highs from this past Spring, which is a bullish development for Europe at a time when European Banks are stabilzing