See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
“You can’t solve a problem on the same level that it was created. You have to rise above it to the next level.” – Albert Einstein
There’s just one day and a month left in 2020, so hang on! Based on current levels in the futures market, equities are poised to close out a very strong month on a down note, but bulls are just fine with that. The pace of economic data picks up this morning with Chicago PMI, Pending Home Sales, and the Dallas Fed.
Be sure to check out today’s Morning Lineup for updates on the latest market news and events, surging copper prices, economic data out of Asia, an update on the latest national and international COVID trends, and much more.
Just like the US equity market, international equities have also had a strong run lately, and from the perspective of US investors, the gains have been even more impressive after you factor in the weakness of the US dollar. Below we show a snapshot of major international regional ETFs from our Trend Analyzer tool. Over the last week, each of the ETFs in the snapshot has seen gains of at least 1.5%. Like the US market, where the largest gains recently have come from some of the areas of the market that had previously been the most beaten down, the biggest gains from an international perspective have been in some of the ETFs that could be considered lower quality, as in those with more emerging market exposure.
While international markets have seen large gains recently, they are also trading at overbought levels. All of the ETFs listed below finished off last week at least 5% above their 50-DMAs, and many are even at ‘extreme’ overbought levels resulting in ‘poor’ timing scores. In other words, they may be due for a bit of a breather to work off these overbought conditions.