Will Mr. Market Be “Selling the News” on Any Trade Deal?

Investors’ bets on successful trade deals may be misplaced

Highlights

• Investors’ bets on successful trade deals may be misplaced

• Chinese markets rally despite deteriorating survey points

• Political uncertainty brews in Europe once again

• Last Friday’s employment data should not be taken as a relief

Key Takeaways

• Futures Drop, Breadth Weakens: We kick off the day yet again with U.S. equity futures in the red and gaining downside momentum, though, as we are finding out time and again, this has proven to be a poor indicator of where we close. The corporate news is less than stellar, with Ford the latest to pull its guidance for the year. What stood out yesterday was not only the record-long streak of gains coming to an end, but that volume was lower on both the New York Stock Exchange and the Nasdaq in a signpost of a classic low-conviction market and the fact that decliners outnumbered advancers by 2-to-1 on the NYSE and nearly 5-to-3 on the Nasdaq. Keep an eye on breadth, which may well have peaked along with the price action.