In today’s briefing:
- Portfolio Watch: Be our guest to jump the great rotation bandwagon
- China’s Above-Forecast Jun Export Is No Way to Cheer
Portfolio Watch: Be our guest to jump the great rotation bandwagon
- What a week in markets after the uber-dovish inflation print yesterday, which saw huge rotation within the equity markets as well as action in both FX and commodities.
- In the equity space, we saw the biggest outperformance of the Russell 2000 against the Nasdaq since early 2021.
- Yesterday’s rotation was driven by hedge funds facing a short squeeze on their small-cap and RE hedges as yields came down.
China’s Above-Forecast Jun Export Is No Way to Cheer
- China’s Jun export rises by 8.6% year-on-year, above the consensus 8.0% and breaking 15-month new high.
- We believe the trade figures in June is no point for the economy to cheer up, despite good export number.
- The decline in imports by 2.3%yoy shows that the local consumption upgrade plan is not working well and the economy reverts to the reliance on exports again to sustain growth.
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