• The over-arching theme in markets? Dude, that risk asset rally has some legs. And bonds have been coming further off their recent highs. The driver is punters betting on the global economy going to enjoy some sort of cyclical rebound, a notion that is underscored by rising Asian manufacturing PMIs (data was out on Monday).
  • A case in point about punters expecting economic improvement is the Philly Semiconductor index, which rose to an all-time high last eve. Furthermore, broader equity markets are on the up, with many a benchmark index setting a new post-Q4 sell-off high. Without a shred of a doubt it’s Shanghai that’s outperforming (YTD up 30%!!!!) as the newsflow surrounding the US-China trade talks continue to be upbeat. For example, Bloomberg reported overnight that the White House is setting 2025 targets on trade for China to meet, which certainly has a whiff off kicking the whole trade thing into the long grass. In any case, President Trump could announce plans for a summit with his Chinese counterpart today. Read the full report HERE.