Daily Financial Markets Chart Wrap

September 18, 2015
By Bryce Coward, CFA in Knowledge Leaders, Markets


  • Well that was quick. All it took was steady Fed to make the Energy space completely unravel.
    • US stocks were lower by 1.6% with persistent selling throughout the session
      • Importantly, Energy stocks were down 2.5% and their 2-day performance is by far the worst of any sector
      • It was all about the counter-cyclicals again today with Telecom, Utilities, Health Care and Staples falling less than the rest
      • We note that some of the gold miners again had a good day today following the Fed as did LinkedIn
    • Japan saw heavy selling early and then was range bound where as Europe was under pressure all day
    • Clearly, Energy is no longer leading the charge off of the 8/25 low and pre-selloff groups (Discretionary, Health Care, Tech) are regaining momentum
    • The VIX moved up from 18 to 22 from overnight lows
    • EMs were up a little on the day, but regionally performance was very mixed with Asia solidly green and EMEA and EM Americas solidly red
    • DM Knowledge Leaders underperformed by about 30bps while EM Knowledge Leaders outperformed by about 18bps
    • 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 5.2% and EM stocks are down 21.7%
  • Another bid move in bonds today, this time in Europe with Germany 10Y yields down 12bps and OATs down 14bps
  • US yields were lower too with the 10Y down another 6bps and the 30Y down another – so much for higher long rates
  • The USD was surprisingly strong on the day as it regained ground from the euro and pound, but the USD was modestly weaker against
  • The big moves in commodities today were in WTI (down 4.2%) and copper (down 3%)
  • All in all the reaction to the Fed seems to be that all is not well in the global economy and perhaps China is not “fixed”

Gavekal Capital Daily Financial Markets Chart Wrap

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