Early in the European trading week, stocks are showing some pep in their step with the broad Stoxx 600 index up just shy of 1% on almost 10:1 positive breadth. While gains are broad, commodities industries (Basic Resources, Oil & Gas), cyclicals (Auto & Parts, Tech, Travel & Leisure), and broad industrial plays (Industrial Goods & Services, Construction & Materials, Chemicals) are all leading the charge higher. While the price action is certainly encouraging, a lot of the bump to start this week is a function of oversold stocks mean-reverting. In the chart below, we show the relationship between performance today and each supersector’s move August-to-date. In short, today’s bounce is generally biggest for sectors that have been beaten down the most as markets fell earlier in the month. More defensive sectors that are actually up this month (notably Health Care and Utilities) are not exactly leading the charge today. For more global markets and macroeconomic coverage, make sure to check out Bespoke’s Morning Lineup and nightly Closer notes, as well as our weekly Global Macro Dashboard.  Start a two-week free trial to Bespoke Institutional to access The Closer and the rest of Bespoke’s suite of Institutional products.

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