Equities Rebound on German and Chinese Fiscal Reset and Softer Tariff Comments Out of Lutnick

Global equities spring back following yesterday's slump...

Highlights

• Global equities spring back following yesterday's slump...

• ... but the S&P 500 has only flatlined since the November election

• German bond yields soar as the country agrees on large defense spending

• TSX sectors most exposed to tariffs continue to drift lower

Key Takeaways

• Global Relief Rally Gains Steam: We have a relief rally going on overnight in global equities after yesterday’s slump. S&P 500 futures have bounced off of some key support levels — coming off its worst back-to-back performance since December and are up nearly +1.0% so far in the pre-open trade. European stocks have rebounded by +2.6% and are gaining momentum, and it was green on the screen across Asia.

• A Global Defense Theme Has Fully Emerged: The mantra “Make Global Defense Stocks Great Again” is clearly more than just a slogan — it is happening in real time. Bond markets in Europe are getting smacked hard with 10-year yields in Germany jumping +16 basis points to 2.66% in the sharpest increase in nearly three years.