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USDCAD TECHS

Consolidation Mode But Remains Bearish

AUDUSD TECHS

Fails To Hold Onto Thursday’s High

US

'Big Tech' Bill Goes To Senate

COMMODITIES

Oil Up For Fifth Week On Supply Disruption, Geopolitics

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As the month end..............>

GLOBAL MARKET/OPINION
GLOBAL MARKET/OPINION: As the month end approaches, there is a lot of talk of a
significant rebalance by balanced fund/pension funds but the impetus for this
has faded somewhat as equities declined this week. 
- To give some perspective for Europe, the eurostoxx index has provided a
negative 3.9% total return so far this month and the Bloomberg-Barclays
aggregate bond index has lost 0.16%. Looking at monthly swings between bonds and
equities over the past ten years, this would be in the 74th percentile that
favours buying equities. It is the largest flow to European equities since June
2016.
- In the US, the situation is also stretched with the S&P providing a negative
2.7% total return and the Bloomberg-Barclays aggregate bond index down 0.99%.
Looking at monthly swings between bonds and equities over the past ten years,
this would be in the 88th percentile that favours buying equities i.e. one of
the largest switches back to equities and largest since Jan 2016.
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