Emerging Market Update (Positive Risk/Reward)

What’s in Today’s Report:

• Emerging Market Update (Finally A Positive Risk/Reward?)
• A Path to Higher Bond Yields?

Futures are slightly higher as Chinese economic data was mixed but didn’t contain any negative surprises.

Chinese Fixed Asset Investment (5.3% vs. (E) 5.5%) and Industrial Production (6.0% vs. (E) 6.1%) missed estimates while Retail Sales (9.0% vs. (E) 8.8%) beat expectations.  So, while results were mixed, the data wasn’t weak enough to offset the positive EM news yesterday so momentum remains positive.

Today focus will be on economic data, and specifically the Retail Sales report (E: 0.4%), as strong consumer spending remains a critical part of U.S. economic growth.  We also get Industrial Production (E: 0.4%) and Consumer Sentiment (E: 97.0) and there is one Fed speaker, Evans (9:00 a.m. ET).

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