Global Markets

US stocks edged higher overnight with the tech based NASDAQ leading the way finishing up +1.2%, the heavyweights took the lead in light trading which saw yields edge up on the prospect of rates “higher for longer”. AI leader NVIDIA (NVDA) soared over 7% while only Tesla (TSLA US) slipped lower in the “magnificent seven”. The Russell 2000 actually closed lower making fresh monthly lows as risk appetite waned – we saw the same theme yesterday on the ASX. Encouragingly China’s uncertainty and an 18% devaluation of the Argentinian Peso had little impact on US markets which have been slipping over recent weeks suggesting buyers are starting to emerge.

• US stocks and especially the Tech Sector are approaching our targeted “Buy Zone” hence skewing our stance to bullish into dips.

The headlines out of China have been pretty disturbing over recent days but the Hang Seng China Enterprise Index remains well above last weeks low, we remain bullish into dips but cannot discount a foray back under the psychological 6000 level, now less than 7% away.

• We continue to like the Chinese and Emerging Markets into dips that could get aggressive if Beijing doesn’t regain investors’ confidence.
• We remind subscribers of the initial panic fallout when US regional banks started falling like dominos earlier in the year but equities have still managed to rally out of the melee.