The #3

Happy Friday,

Today’s Musings is brought to you by the #3:

1.    SPY back over 3k for 1st time since July while Asian and European equity up for the 3rd week in a row (outperforming US equity)

2.    Ahead of next week’s meeting, Fed funds futures contract pricing in 34 bps of cuts between now & YE;

3.    Q3 EPS coming in better than (low bar) expected in US and Europe with y/y +2% in US vs -4% consensus & EU EPS coming in -1% y/y vs -3% forecast - revenue growth up nicely in both

A 3 part China piece: 

1.    China ranked #31 in World Bank's 190 country study of business competitiveness - up from #46 a yr ago & counter to US narrative, reflecting a China that continues to open up and improve its offering.

2.    China's Yuan strengthens vs the USD for the 3rd week in a row - longest streak this year.

3.    China's 10 yr bond yield backs up to 3.25%, highest in several months.

To finish on a non #3 note: low vol(ume) in US equity trading & low vol(atility) in bonds, lowest of the year, suggest investors are looking for direction - TPWIM expects continued good risk asset performance into year end.

TGIF people!

 Jay & Jamie