– Stocks & commodities moved higher – bonds & REITs lower. We plot the MSCI USA Index total return for US stocks, and the index reached a new high on Friday.
– Big bounce from Transports, Industrials, Energy and Finance. S&P 500 less than an 0.2% move from a new high.
– While not close to all-time highs, four countries finished the week at 52 week highs – France, Ireland, Japan and Russia.
– Fed widely expected to cut rates by 25bps on Wed. China’s state bank urged the country’s banks to step up application of “blockchain” and embrace “digital finance.”

– Stocks & REITs rallied. Bonds were flat, and commodities declined. S&P 500 finished the week less than 1% away from new highs. REITS up almost 30% ytd.
– Size and value factors outperformed last week. Financials bounced 2.5%, but the big 4 US bank Q3 eps rpts have revealed slowed growth in lending.
– Boris Johnson expected to put Brexit deal draft through parliament vote this week. WSJ reports global policy uncertainty index at all-time highs.
– Fed now injecting both permanent & temporary liquidity into mkts and again expanding balance sheet. JP Morgan reports that money mkt stress likely to worsen.