Chinese Manufacturing Quietly Turns in a Modest Revival; Global Investors Are the Most Overweight the Eurozone in Four Years
Appetite for European equities grows as U.S. stock markets underperform
Highlights
• Appetite for European equities grows as U.S. stock markets underperform
• Treasury yields and the dollar break below critical trendlines
• Tariffs are inflationary, not deflationary
• Recession pressures in Canada set to further weigh on the loonie
Key Takeaways
• Futures Waver After Quarter-End Bounce: U.S. stock market futures are pointing to a softer open, but as we saw in yesterday’s revival (smacked of quarter-end pension fund rebalancing), it’s not always the best indicator of what’s to come (yesterday’s bounce didn’t stop the S&P 500 from posting a -5.8% slide in March, its worst monthly performance since December 2022). Europe (+0.6%) is playing catch-up to yesterday’s U.S. rebound. Ditto for Asia.
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