Pro Perspectives 12/6/19

December 6, 2019

Stocks continued to complete the “V” shaped recovery on the week, following the big jobs report this morning. 

Let’s take a look at some charts as we end the week.

First, here’s a look at the “V” in the S&P 500, as we close back near record highs today …

And as we discussed yesterday, we had a similar “V” in the interest rate market …

Today, the notable mover was copper – up 3.2% on the day.  This is where you see some early bets of upside surprises coming for the economy (which fits the theme we’ve been discussing). 

Now, let’s take a look at the sleeper market for next week.  Spanish stocks (and European stocks, in general).  

The media will be focused on the Fed next week, but the bigger event might be in Europe.  As we discussed yesterday, Christine Lagarde will make her debut as the ECB President in her first policy-setting meeting with the governing council.

In recent months, we’ve talked about the prospects of the ECB ramping up the QE program by outright buying European stocks.   Curiously, this week, as U.S. stocks were in an ugly slide, European stocks were holding positive most of the day.  Was the ECB involved?  Maybe.  We will find out next week. 

This data point today on German Industrial Production (down 5.3% year-over-year) will contribute to the case for pulling all of the levers at the ECB. 


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