DB Today -Global/Macro

As the S&P 500 (-0.11%) reversed strong gains from the opening (+0.87% atthe day’s early highs), its’ been noticeable that there has been a distinct sectorrotation over the last week which is impacting the momentum of the market. TheNASDAQ fell -1.05% yesterday and more recently, the ‘FANG’ names have soldoff -5.61% in last 5 sessions and were -1.83% lower yesterday. Within the S&P,the IT sector fell -1.93% and has fallen -3.9% over the same 5 days and is at c5week lows. Meanwhile Telecoms (+1.60%) and US Financials (+1.55%) were thestar performers yesterday and are now up 7.99% and 6.84% respectively over thelast 5 days. For Financials the rally seemed to coincide with incoming Fed ChairMr Powell confirming his belief that bank regulation shouldn’t go any further andalso with momentum building that the tax reform package would pass the senate.

    The sector is at the highest level since October 2007. Elsewhere, Telcos were seenas big beneficiaries from proposed corporate tax cuts. So there’s a fair bit goingon internally in US equities at the moment.