Not a Buyer of the 'Solid' Payroll Data Narrative

The payroll report was more bearish than markets seem to think

Highlights

• The payroll report was more bearish than markets seem to think

• U.S.-China trade meeting today in London

• Bond market awaits a key set of Treasury auctions

• Chinese prices fall amid a major reorientation of exports

Key Takeaways

• Equities Mixed Ahead of U.S.-China Trade Talks: We kick off the week with global markets fairly mixed (no word yet on the high-profile U.S.-China trade talks in London). What we have are U.S. equity futures slightly in the green, Europe off nearly -0.3%, and broad strength across Asia: Hong Kong (+1.5%), Japan’s Nikkei 225 (+0.9%; the TOPIX now clawing its way to being flat for the year), Taiwan (+0.6%), China’s Shanghai Composite (+0.4%), India (+0.4%), and Singapore (+0.2%) were all up. Chinese stocks trading in Hong Kong (+1.7%) actually hit bull-market territory today — ostensibly expecting something big out of the London meeting.