Daily Financial Markets Chart Wrap

September 16, 2015
By Bryce Coward, CFA in Knowledge Leaders, Markets

Highlights:

  • To our eye the stock markets became more confident that the Fed will not raise rates tomorrow
    • US stocks were higher by .9% with persistent buying throughout the day
    • The North American session was led by cyclical sectors of Energy, Materials and Consumer Discretionary with Tech, Health Care and Telecom finishing at the bottom, but still up on the day
    • The big news today was the SABMiller/Molson deal which had both stocks up double digits today
    • 9 out of 10 economic sectors were higher on the day in North America and all were higher on the day for DM in aggregate
    • Europe and Japan were also stronger on the day, so the US was just keeping the momentum going
    • Energy’s big day today brought it closer to the leadership position off of the 8/25 low, but Tech still leads from that day
      • It’s still looking more and more like the strength in Energy off of the 8/25 low was driven by short covering, but the next few days will be key in keeping with that assessment
    • The US seems to be pulling away from the pack off of the 8/25 low, with Canada’s big day today putting it on par
    • EMs were 2% higher on the day as well with defensives lagging and cyclicals leading
    • DM and EM Knowledge Leaders lagged today, as would be expected from the formidable bounce in commodity related areas
    • Over the last year Developed World and Emerging Markets Knowledge Leaders have bettered DM and EM stocks by more than 7% each
    • Over the last year, DM stocks are down 5.9% and EM stocks are down 23.4%
  • Government benchmark bond yields were basically flat on the day despite all the strength in stocks
  • The USD was lower driven by a strong Ausi dollar and pound and the yen was a bit weaker following a dovish BOJ
  • Gold and silver and most other major commodities voted for no rate hike by finishing notably higher

***New tables of 1 day sector performance and top and bottom stock performers***

Gavekal Capital Daily Financial Markets Chart Wrap

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