Markets are poised to continue the momentum from yesterday as global data seems to be showing that recovery is accelerating. Specifically, economic data from China showed retail sales rose in August for the first time this year. Industrial production was also better than expected. European markets were buoyed by promising data from Germany and also continues to rally.
U.S. futures are pointing to a higher open with tech leading the way. Nasdaq futures are currently +1.2% while the S&P is up +.80%. Crude oil & Gold are also trading slightly higher.
Light day in ETF land as volumes dipped over 25% overall from Friday. A few trades to highlight..
In Domestics, there were large energy sellers in both FXN (First Trust) & XLE (SPDR). FXN continues to lose assets from a high in shares just one week ago. Industrials (XLI) saw good in-flows adding 1.3%. XLV (Health Care) also saw a nice pop (adding 1.4%) although volumes were lighter than normal.
Broad based flows in usual suspects IWM (iShares Russ 2K) & SPY (S&P 500 SPDR) were probably the largest blocks we saw towards the end of the session. It looked to be money moving from the 500 & into the 2k. There were also sellers in MDYG (SPDR S&P 400 Mid Cap Growth) & Buyers of EFIV (SPDR ESG). EFIV typically trades less than 50k per day but saw blocks yesterday and traded nearly 750k shares.
In International trading, similar to domestic ESG buying, International name ESGE (iShares Aware) saw in-flows consistent with what we’ve seen for the year:
Single name country flow was fairly busy with flow in EWZ (Brazil), EWG (Germany), EWT (Taiwan), & EWY (South Korea). While EWZ saw back &forth flow, the other names were predominantly buy-side flow. QEFA (SPDR MSCI Strategic factor) saw block in-flows yesterday (typically trades only 50k shares per day). Vanguard names, VWO (FTSE Emerging) & VEA (FTSE Developed) were active with two-way flow.
In Fixed Income, we saw sellers in IG names USIG (iShares) & LQD (iShares). Aggregate names, AGG (iShares) & USTB (Victoryshares ST AGG) were better to Buy while FTSM (First trust ST AGG) was offered. Floating rate names FLOT (iShares) & FLRN (SPDR) both were better to Buy. Typical names, HYG (iShares) & HYD (VanEck) saw in-flows, while HYLS (First Trust) was better for sale.