First Call - Hedge Fund Telemetry

S&P futures up just over 0.2% and US equities on track for a good week of gains following last week’s pullback. Telecom and tech the big gainers, while financials a laggard as banks have struggled. Asian equities mostly higher overnight, though China lagged. European markets posting modest gains. Treasuries weaker across the curve, though 10-year yields still below 3%. Dollar a slight laggard on the major crosses. Gold up 0.3%. WTI crude up 0.5%.
Another fairly quiet session. China macro mixed; Retail Sales beat (9% vs. 8.8% estimate), Industrial Production inline (6.1%) but Infrastructure Investment slowed to 1.9% from 14.9% last month despite recent stimulus measures. The latest batch of articles on trade highlighted skepticism about any near-term breakthroughs, though this was not too surprising and latest WSJ survey revealed minimal economic impact thus far.
Not much going on elsewhere, though monetary policy continues to get attention. WSJ discussed how things are about to get a lot more complicated for the Fed as the debate over the neutral rate takes on a more prominent role. Washington Post noted Congress on track to avert a government shutdown, though that was never really a concern for the market. Manafort reportedly close to reaching plea deal with Mueller, though unclear if he will cooperate in Russia probe.
Upside for stocks this week attributed to a few different dynamics, including unchanged positive US fundamental narrative (strong earnings, late-cycle fiscal stimulus, big buybacks, trade war skepticism, fund performance/positioning). Softer inflation data has also helped to dampen upward pressure on rates and dollar. Latter a positive for battered EM, as has been news of fresh US-China trade talks and bigger rate hike out of Turkey.
US rates continue to drift higher, the US 2 Yr yield is at new 10+ year highs, and the 10 Yr yield is again approaching 3% (highest level in 6 weeks).

Unsubscribe me from Hedge Fund Telemetry

CONFIDENTIALITY NOTE and DISCLAIMER: This message is for the named person's use only. It may contain confidential, proprietary or legally privileged material. No confidentiality or privilege is waived by any accidental or unintentional transmission. If you receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard copies and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print or copy any part of this message if you are not the intended recipient. Hedge Fund Telemetry LLC. cannot guarantee the confidentiality of the material transmitted; therefore, information of a sensitive or confidential nature should not be transmitted. There is risk in trading markets. Hedge Fund Telemetry reports are based on information gathered from various sources and believed to be reliable, but are not guaranteed as to accuracy and completeness. The information is subject to change without notice and Hedge Fund Telemetry LLC has no obligation to provide any updates or changes. Hedge Fund Telemetry LLC is providing this data for informational and educational purposes and does not believe that it is sufficient to base an investment decision on. This information should not be regarded as a solicitation or recommendation of any particular security or to engage in any trading strategy. One should always check with your licensed financial advisor to determine suitability of any investments.