Talking Points:
• Various benchmarks for 'risk' were taking different tacks this past session
• US equities posted a strong rebound late into the day, emerging markets collapsed and the yen held steady
• When various markets are taking divergent paths on risk, it suggests the theme isn't strong
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Was today's session a signal for a risk rebound or collapse? On the one hand, US equities posted a strong rebound through the end of the US session. On the other, emerging market currencies and capital markets collapsed on the day. Then there is the Yen crosses which were little changed through it all. Which one is the more accurate read on sentiment trends? They all are. When assets and measures that are sensitive to 'risk' aren't aligning, it is a signal that the fundamental current itself is lacking for influence. Does one measure have a first mover advantage though? We take a risk view of the market and discuss what is needed to jump start the theme (including the Chinese 1Q GDP release) in today's Strategy Video.
