Contrarian Investor Premium
Contrarian Investor Premium
China-US Trade Deal = Risk On
1
Preview
0:00
-1:17

China-US Trade Deal = Risk On

Stock futures are soaring as investors now have reason to throw caution to the wind and pile in to risk assets…
1

Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Monday, May 12.

State of Play

News of this China-US trade deal is greatly helping risk appetite as we eye or board of indicators for signs of direction at 0655 ET:

  • Stock index futures are rallying in a major way. Small caps are leading the charge, with the Russell 2000 up 4.5%. Nasdaq futures are 4% to the good with S&P 500 up 3%;

  • Commodities are seeing a surge in oil prices — WTI crude is up 3% to trade around $63/barrel — as precious metals drop with the risk-on mood. Gold and silver are down 3% each;

  • Bonds are dropping, keeping with the risk-on theme, with the 10-year yield up 8 basis points to 4.45% (yields move inversely to prices);

  • Cryptos are surprisingly flat, with Bitcoin unchanged at $104,000.

Cover art by author via Grok AI

Listen to this episode with a 7-day free trial

Subscribe to Contrarian Investor Premium to listen to this post and get 7 days of free access to the full post archives.