Rise and shine everyone.

The markets are still in quite the bullish mode, with commodities taking the lead, except Crude Oil.

XLB (Materials) led the S&P Sector rotation yesterday, hitting an all-time high.

China’s Politburo meeting yesterday highlighted an urgent focus on boosting the economy. There’s a focus on stabilizing the housing market, improving job opportunities, and strengthening the social safety net.

Markets are also getting a boost from easier monetary policy and support for companies and stocks.

Over in Europe, luxury stocks had a great week on the back of China’s stimulus measures.

Meanwhile, the Swiss National Bank cut interest rates by 0.25% at its third consecutive meeting, bringing the rate to 1%. Despite speculation of a larger cut following the US Federal Reserve's lead, the bank opted for a smaller reduction.

Today’s focus is inflation. Preliminary readings from France and Spain show deceleration. In fact, the MoM reading showed deflation, i.e., a negative change. European yields are moving lower, as the market prices in a further rate cut in October.

We also get US PCE numbers today. However, it doesn’t seem like inflation is the focus at all in the US. The last CPI came in hotter with stickier Shelter inflation, but nevertheless, the Fed’s still projecting quite an aggressive rate cutting path.

Chart of the Day - BofA’s Flow Show

It’s not just the S&P 500 but, global stocks are set to hit an all-time high, surpassing the previous high seen in 2021.

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)