15.09.25 - Cheering Monday

After a quiet weekend and a mixed set of economic headlines, investors show little hesitation in continuing the Tech Party.
France got a downgrade by Fitch to A+ from AA- with a stable outlook, following latest political challenges in combination with the budget.

In China, the economic data with retail sales and industrial activity came in lower as analysts expected while house prices continue to slid.

Markets:

• Equities: Most major indices are trading higher.

• Bonds: Yields move lower across the board.

• FX: The US dollar hovers near recent lows.

• Commodities: Gold extends its rally, climbing more than +1% together with other metals and oil.

• Cryptos: do not extend their latest up move

My View: Momentum may well carry markets into midweek, and possibly beyond. The real test could be on Wednesday, when the Fed announces its rate decision and outlines the outlook. The market is expecting a dovish cutting path. Until then, investors appear happy to ride the wave, brushing aside underlying risks in favor of speculative momentum.

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