US stocks rallied strongly overnight with all 11 sectors advancing while at the same time US bond yields retreated with the 10-years suddenly well under 4%. Microsoft contributed the most to S&P500’s +2% gain with the rally even more impressive as heavyweight Apple Inc (AAPL US) ended the session down -1.9% but with 97% of stocks up it was never going to be a good day for the bears. The catalyst for the move was the BOE’s decision to intervene in markets and start buying longer-dated government bonds which sent UK 30-year Gilts down a massive 1% in just one day!
- We remain positive equities and although last night’s relief rally following the continuous brutal selling is not a change in trend it certainly helps sentiment.
- Its hard to know exactly what will finally trigger the mountain of $$ on the sidelines to re-consider stocks but we believe its likely to be simple FOMO as / when the market recovers i.e. “Fear of missing out”.
MM remains bullish US equities into Christmas
Add To Hit List
