The stock up close to 100 this week. Is that a squeeze or a fundamental reevaluation . We have seen travel stocks really rising quite sharply this week. Lets take a quick look at the european markets. Theres a bunch of factors i want to focus on, plus a global view of what is going on. You can see what is happening with the chinese currency. 0. 5 ,an stocks up around pretty much matching the gains in the united states. We are watching stimulus pingpong. Italian 10 year, there it is. Some pretty big moves over the last few days. Then weve got what is going on with the chinese currency. China back today from golden week. A huge bid in terms of equities and the currency. Will the pboc squash that one . We will wait and see. Europe focusing on what is happening with the lockdown story and what is happening with the bond markets. Lisa the pandemic ongoing, leaders stepping up to contain the surge in virus cases across the continent. Bloombergs maria tadeo joins us with more. What do we know
Way to the indian border. Theres tangible issues. No question they are flexing their muscle right now. What i would notice in this market on a quiet wednesday, i know you will do the data check here. Publishing moments ago this bullish consumer view, and that was a game changer yesterday with the retail sales report. Jonathan we will catch up on the geopolitics a little later in the hour. Equity futures up 19 on the s p 500, focusing a move higher over the last several weeks, up by 0. 6 . Just surprise after positive surprise. The economic surprise index in the United States is absolutely flying. And it is at a record high searching higher after yesterdays retail sales beat. It was just an absolute trout. Today absolute trounce. Today i am going to be watching the u. S. May building and housing permits starts to get a taste of what we may expect. U. S. Loan purchase applications hit an 11 year high last week, so that should be some sort of indicator. 12 00 p. M. , fed chair jay powellc
Capitulation. I think investors are trying to figure out when does it come. How do you know . Abigail you feel the panic and fear. Highyield is selling off , credit selling off. We are seeing the haven bid. The other thing you would want is that capitulation bottom. Technically, we are nowhere close to the bottom, so we could see days and weeks of this kind of relentless selling, very reminiscent of 2008. Take a look at the Energy Sector, down more than 15 , its worst day ever going all the way back. That is the degree of the fear, the uncertainty and the selling of an on today. David you are a technical person. Give me an example of resistance on the s p. Abigail we are looking more at support, which means we want to see where the buyers are stepping up. You want to go to a weekly chart on todays open. We are well through the 100 week moving average, which means we will probably find support down. If we are lucky, that is at 2640 , but i would make a case for 3300. When you have bonds
Stories. We begin with the elections in taiwan. The president won a landslide majority, seen as a rejection of beijings push for one country, two systems. Joining me from taipei is stephen engle. Walk us through the significance of the vote over the weekend. Stephen it was quite significant. Now that she has that landslide victory and the mandate for another four years, theres three big questions. How will china handle another four years of a thorn in their side, the policies of taiwan and her proindependence minded policies that really resonated with the electorate . More than 8 million votes, a record here in taiwan. The hong kong protests really resonated with the electorate, of ahat led to a rebuffing push for closer economic ties. The question is what is the future of the Opposition Party that got routed . Theyve lost four of the last six president ial elections, and they need a you voice for the longer eat for the younger electorate. Finally, the economy. Tot also propelled tsai
My eyes are all on the bond market, both the 10 year and 30 year perhaps approaching the record low. Im taking a look at Cathay Pacific shares. We had reports about the airport in hong kong, whether flights or canceled flights were canceled or not. Right now it looks like only check ins were canceled. Dollaryen continues to strengthen come of strongest yen has been in the last 18 months or so strengthen, the strongest yen has been in the last 18 months or so. David we are joined by bloombergs Marty Schenker and sarah ponczek. Lets start with argentina. A chart here shows the price of credit default swaps in argentina. You dont need to know calculus to know that is not a good thing. So why are people so nervous about mr. Macri going out of office . Marty because they are very protectionist, and everybody is heading for the exits. Taylor i spoke to damian who covers aerday, lot of the emerging markets, and asking him what gauge measures the risk the most. What in your area you are resear