Europe stocks stage world-beating rally as trade war backfires.
8 of the world's 10 best-performing stock markets are in Europe this year, w/Germany's Dax rallying >30% in Dollar terms: Peripheral markets such as Slovenia, Poland, Greece, and Hungary also performing well. Source: HolgerZ, Bloomberg
Goldman: Hedge funds net bought US Info Tech stocks for a 3rd straight week and every day this week, driven by risk-on flows with long buys outpacing short sales (1.6 to 1)
It’s worth nothing that (1) the recent streak of buying in US Info Tech came after the sector was net sold in 10 of the previous 12 weeks, and (2) this week’s notional long buying in the sector was the largest in more than 10 years (+1.6 z score), pointing to a positive turn in sentiment. Source: Goldman, Neil Sethi @neilksethi
🚨Retail investors have bought every dip this year
The S&P 500 has returned 0.36% on average following a down day, the most ever recorded. By comparison, last year it was just 0.02%. Retail investors purchased over $50 billion in US equities since the April low. Source: Yahoo Finance, Global Markets Investor
Japan's 30-year government bond yield has risen sharply in recent months and is now 3%.
That's the same yield level as Germany, but German government debt is 60% versus Japan's 240%. Japanese yields are still way too low given Japan's astronomically high level of government debt. Source: Robin Brooks @robin_j_brooks on X
Nvidia quarterly revenues by regions over time...
Up to 20% of Nvidia’s revenue comes from Singapore a known gateway to China and when including direct sales to China and Hong Kong, roughly one-third of its total revenue ($15 billion) may be exposed to Chinese market risk. Source: econovisuals
$TLT just saw a weekly inflow of $1.8 Billion, the highest inflow among all ETFs 🚨
Source: Bloomberg, Barchart
The German-US trade balance surplus keeps increasing...
In Germany, anticipation is building for the upcoming meeting between Chancellor Friedrich Merz and US President Donald Trump. The two leaders will meet at the White House on June 5 to discuss key issues including the war in Ukraine, the Middle East, and trade policy. Over the past 12 months, Germany has posted a trade surplus of >€70bn with the US, equal to 1.7% of its GDP... Source: HolgerZ, Bloomberg
If it is the case, that means the printer is coming
Source: Bloomberg
