Trading Desk

EWY

DBA

U.S. food CPI was flat in September even as energy prices jumped. I continue to expect the Iran war to feed into food prices..

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09992.HK

Pop Mart's tracked online sales weakened further in September. A tracker covering Tmall, Taobao and Douyin recorded a 49% year-on-year decline, following a 39% fall in August. The weaker demand signal sits alongside expensive, crowded shorts, with the latest financing data showing borrow costs above 24% and utilization near 96%.

HO1!

Rotation did not stop the index pullback. The Dow gained 0.7% this week, while SPX lost 1.9%, RUT fell 3.0% and NDX dropped 5.5%.

Credit is still moving in the wrong direction. Between October 9 and 15, broad U.S. high-yield spreads widened 12bp to 323bp, while CCC-and-lower spreads widened 25bp to 1,278bp. Rotation within equities has not removed the refinancing pressure on weaker borrowers.

DXY