Yandex rallied 6.6% on Thursday as Geneva Ukraine talks yield first positive political developments in weeks from the core parties.
We have sketched the MXEF index back to April of 2010 to encompass a period of peaking EM valuations in the fall of 2010, and the ensuing periods of stress from peaking PMIs, dramatically slowing China, Fed stress, local policy failures, and capital flows out.
As we see the US emerge from the winter hibernation (Retail Sales, Industrial Production, Jobless Claims), we are also seeing signs of Emerging Markets recovery on Macro.
Tim Seymour with your Emerging Money Audio for Friday April 18, Today we review the Chinese Internet index and we want to be playing off of the very positive Weibo (WB, quote) IPO yesterday pulling all the Chinese players higher today.
Russian (RSX, quote) stocks in US afternoon trading have caught fire as the outcome from the Geneva discussions shows some tangible progress beyond merely a constructive tone that was all markets could have expected to gain from the event.
Gold continues to see pressure from the US economy as the spring thaw is yielding strong macro from the formerly frozen US economy.
As the US threatens to escalate sanctions, the question remains how effective sanctions can be, and what would be the scale of them.
The attached chart of the Russell 2000 shows a breakdown that many have been calling for but has yet to really unfold.
I’m seeing big buyers of SPX call upside around 1850 and 1860. Upside vol is cheap, and unless Yellen destroys the party, market can rally into long weekend. Expecting a re-test of highs on cash deployment and continued decent earnings off LOW BAR into earnings season.
US Cap Utilization is at multi-year highs as US data points improve with the spring weather.