The divergence between the two regions reflects the difference in macro data strength between the two

Risk assets were mixed over the month of August with global and US equities rising while emerging markets, Japanese and European equities and global high yield were all down.

The threat from heightened tensions between the U.S. and China could drag down stocks more than many are anticipating, according to one hedge fund vet.

In an interview with CNBC’s “Halftime Report” on Thursday, Appaloosa Management co-founder David Tepper warned that equities are at risk of falling 5% to 20% if the trade war with the Asian economic powerhouse worsens.

Macroeconomic data announced during the week as well the news of the Prime Minister’s impending meeting on Saturday have been positive for the markets.

MUMBAI: Equity markets on Friday continued the momentum from the last trading session on Wednesday, to close higher. BSE Sensex closed the day by almost a percentage higher at 38,090.64 and the Nifty surged 1.28 per cent to 11,515.20. However, BSE Sensex closed 0.8 per cent down for the week and Nifty by 0.6 per cent as currency fears and oil price worries dragged the equities down. Macroeconomic data announced during the week as well the news of the Prime Minister’s impending meeting on Saturday have been positive for the markets.

London — Shares rose around the world on Friday as expectations grew that the US and China will open new trade talks, while an interest rate hike in Turkey supported the lira and global risk appetite.

The MSCI All-Country World index, which tracks shares in 47 countries, was up 0.5% on the day after the start of trade in Europe.

Last week was another important week on Wall Street. The market rallied nicely after the bulls showed up and defended important support (50 DMA line). Remember, after a big rally, it is perfectly normal and healthy to see the market pause and digest that move. Right now, that is exactly what is happening. The market is back in “rally mode” as the major indices are climbing once again. Barring some unforeseen selloff, the major indices are likely to hit new highs in the near future.

The neighbors to the north don’t just have maple syrup, hockey gold medals and free healthcare to boast about. Stocks are showing promise after cratering oil prices previously put a dent in overall growth.

Now, signs point to Canadian equities being poised to turn a corner and comparatively rival the American market.

Summary

• Vol is bleeding across all the major averages as tech leads.
• The Fed could walk back a September hike if they wanted to. The point is they don’t.
• A trader states his conviction and how he’d trade it, and why he’s not going to do it. Thoughts worth pondering.

Market Intro

Tech stocks (XLK) are leading today’s charge higher for US equities (SPY, DIA, IWM); The tech-heavy NASDAQ (QQQ) is unsurprisingly outperforming the other averages.

Investors remained bearish on gold exchange-traded funds (ETFs) as they pulled out Rs 45 crore from the instrument in August, taking the total outflow in the first five month of 2018-19 financial year to Rs 241 crore. The net outflow meant assets under management of gold funds fell 7.5 per cent in the first five months of 2018-19 to Rs 4,445 crore in August-end, according to latest data available with Association of Mutual Funds in India (Amfi).

• Amid trade tensions, don’t jump ship on U.S. equities yet, U.S. Bank’s Lisa Erickson says.
• Nela Richardson, investment strategist at Edward Jones, says she feels comfortable with small- or mid-cap stocks in the U.S., but for large-cap, look internationally.

Amid trade tensions, don’t jump ship on U.S. equities yet, U.S. Bank’s Lisa Erickson told CNBC on Thursday.

ATLANTA — Hotel Equities (HE), the hospitality industry’s premier hotel management and development company, announced today that it has created a strategic alliance with private equity firm, Virtua Partners. Virtua Partners is making a series of investments totaling more than $500 million into HE’s hospitality platform. The new capital will be utilized to fuel growth through hotel management company acquisitions, organic growth and strategic investments into various hospitality assets.