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Sectors to Buy If This is A ’15/’16 Repeat

Today’s Report is attached as a PDF.

What’s in Today’s Report:

  • What Sectors to Buy If This Is a ‘15/’16 Repeat
  • Why Are Global Central Banks Turning Dovish? (And Is It A Good Thing?)
  • What’s Next for Oil

Futures are moderately weaker as concerns about global growth rise following more weak EU economic data.

German Industrial Production badly missed estimates, falling –0.4% vs. (E) 0.8%, while the European Commission cut 2019 expected EU GDP to 1.3% from 1.9%.

The Reserve Bank of India surprisingly cut rates over night and is now the second large central bank to give markets a dovish surprise (after the RBA on Wednesday).

Today focus will remain on economic data and Fed speak, as we get Jobless Claims (E: 223K), Consumer Credit ($17.5B) and comments by dovish Fed Governor Bullard at 7:30 p.m. ET.  If the news is generally dollar bullish and we see a further rise in the dollar, that might weigh on stocks more as a weaker dollar is needed to help boost corporate earnings going forward.