Highlights:

• The Fed did not raise rates today…again
• US stocks were lower by .3% despite a good amount of gyration around the release of the Fed decision
• The North American session was led by counter-cyclical sectors of Utilities, Health Care and Consumer Discretionary with Energy flat on the day and Financials and Tech the big losers
• Europe and Japan were muted on the day ahead of the Fed decision
• It’s still looking more and more like the strength in Energy off of the 8/25 low was driven by short covering
• Energy’s leading position from the 8/25 low has now been erased with Tech, Consumer Discretionary and Health Care all either better than or about to over take Energy
• It appears that Health Care will not drop its leadership position just yet
• Canada was better today driven by the gold miners, but the US seems to be pulling away from the pack off of the 8/25 low
• Speaking of gold miners, they were much stronger today and rounded out the top 3 performers in DM Americas – not a surprise given the Fed’s decison
• EMs were just modestly lower on the day higher on the day with Tech and Materials leading and Telecom lagging
• DM and EM Knowledge Leaders outperformed today
• 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 4.7% and EM stocks are down 22.3%
• The big move in bonds was in the US post the Fed
• 10 year yields fell 11bps and 30 year yields fell 8bps
• The USD was unsurprisingly much weaker today as it gave ground primarily to the euro and pound and even the yen
• Gold’s reaction was somewhat muted as it was only up .9% today

Gavekal Capital Daily Financial Markets Chart Wrap

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