The global market is abuzz with excitement as both US and European stocks and bonds are experiencing a significant rally. In the US, the JPM Market Intel wrap reports that futures are higher across the board, with the NDX and RTY outperforming. This surge can be attributed to President Trump’s recent comments on a potential deal or discussions, which has led to a decrease in energy prices, bond yields, and the value of the US dollar. The Energy sector is experiencing a decline, dragging down Base and Precious Metals, while Ags are also lower. However, Semis are leading the Tech tape higher, with Mag7 being a top performer. Meanwhile, in Europe, major markets are seeing a stronger rally in bonds, with bull steepening most regional curves. Germany, France, and MCX are leading the charge, while the UK is lagging behind. Luxury and Software are among the top performing D1 baskets, while Energy and Semis are among the top laggards. The unwinding of both legs of LT Momentum is underway in the US, with Beta and Value leading the way. Cyclicals are outperforming Defensives across the board, with UKX down 0.1%, SX5E up 1.0%, SXXP up 0.4%, DAX up 1.4%. CSI is down 1.0%, HSI is up 0.5%, NKY is down 0.9%, ASX is up 0.5%, and KOSPI is down 5.1%. (more…)