– Global equities rose again, as did commodities, while bonds and interest rate sensitive assets took a breather last week.
– Monster one-week snapback rally in both small cap and value stocks last week, which has market watchers asking if it rang a bell signaling a better days ahead for value.
– Oil prices set to surge after drone attack on Saudi oil field takes out half the country’s oil production temporarily. China industrial production at 17-yr low.
– Fed is widely expected to cut rates by 25 basis points this week. WSJ reports warning signs coming from high yield market.

– Risk assets rallied collectively for the second week in a row. Bonds sold off modestly. US equities are just shy of 2019 highs.
– The largest concentration of US Zombie companies is in the Healthcare sector, 2019’s second worst performing sector ytd. Zombies are cos with interest pmts higher than op profits.
– Earnings expectations for the S&P 500 in Q3 are for addl y/y declines, the third quarter in a row of negative y/y growth.
– ECB is expected to unveil additional stimulus plans at its policy meeting this week. 20bps cut expected, but concern is growing over negative interest rates.