US equities are stumbling out of the gate to start 2021 as the S&P 500 (SPY) is on pace to finish the first trading day of 2021 down 1.8%.  Meanwhile, Chinese equities have caught a bid.  The Xtrackers CSI 300 ETF (ASHR) is up 1.5% today.  Today is actually set to be the third day in a row that ASHR has risen well over 1%, the first such streak since September. That brings ASHR to its highest level since August of 2015. That compares to SPY which is looking to have one of its worst days since late October.

On a relative basis, the ratio of SPY to ASHR has now hit its lowest level since July.  In the same vein, the move in this ratio today is on pace to be the largest single-day decline since July 6th when ASHR had risen double digits in just one session.  During the COVID Crash last year there were also a handful of days in which the ratio had experienced similarly sharp declines.  But overall, today’s drop in SPY relative to ASHR stands in the bottom 4% of all daily moves since ASHR began trading back in 2013.  Chinese equities have taken an early lead against US markets to start 2021.  Click here to view Bespoke’s premium membership options for our best research available.

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