Earnings remain in focus though the depth of the sell-off overshadowed most major reports. Weak results from Germany’s SAP and Taiwan Semiconductor dragged American tech indexes lower.
Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled worries that higher interest rates and the trade war are hitting profits.
Philip Morris surged on strong demand, buoying consumer shares. Elsewhere, emerging-market assets also fell after declines in Europe and Asia. The Japanese yen gained the most in a week and gold traded near three-month highs.
I’ve been clicking through a lot of charts over the last couple of days and there are some very clear conclusions that jump out. The most important of these is that a major rotation is underway. The big momentum trades than really animated markets in the early part of the year are underperforming whereas a good many that have been out in the wilderness for the last couple of years are increasing showing signs of activity.Click HERE to subscribe to Fuller Treacy Money Back to top