Not much of interest at the news level this week and with investors waiting for the ECB meeting tomorrow, since Monday there has been quite interesting divergence on Wall Street, namely the fact that small caps are clearly stronger than blue chips, as can be seen from Russell 2000 Index registered over the last 3 days with 4.1% appreciation, while the S & P500 was marginally up 0.4%.
We will see if this trend continues, and it should be noted that smaller companies are less affected by the trade war issue, i.e. this divergence is a way for investors to also create some extra protection from risk arbitrage, without going after the usual sectors.
Photo by You X Ventures.
