1. Foreigners have been huge buyers of US equities.

If that flow were to dry up, it would eliminate an important source of equity demand.

Below: That’s a trillion dollars worth of foreign inflow.

2. AI stocks rally on Musk's insatiable demand comment.

Revenue topped the $12.72B consensus estimate, while profit nearly tripled Wall Street’s $1.57B forecast. SpaceX is making its AI money by renting data-center capacity to developers including Anthropic and Google, making the business look more like a cloud provider.
"We are hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute. So we could rent out our compute several times over if we said yes to everyone," Musk says.
Then came the $19.6B spending bill. Quarterly capital expenditures nearly tripled from $6.9B one year earlier as SpaceX funded compute capacity, Starlink expansion, and Starship development.
That explains the muted share reaction. Revenue more than doubled, but investors had already watched the stock fall from above $225 after its June IPO to roughly $148. Huge growth met huge expectations.

Below: EPS of 35 cents.

3. CAC40 trades at biggest discount to DAX since 2009.

4. Lots of worries to choose from, but European earnings momentum remains positive.

Friedrich Merz said Europe had the ability to harness its strength and overcome economic malaise as he reinforced his plan to boost investment in areas such as artificial intelligence and overhaul Germany’s social welfare system.

5. Alibaba owns equity in pretty much every AI startup in Asia.

We expect Alibaba, having the largest cloud infrastructure in China, to win share in the current evolutionary AI cycle in China.
Its Moonshot holding could go public with a $50 billion valuation and the potential spinoff of the proprietary chip business, T-Head, could also unlock value.

An expected growth of 25% and a forward P/E of 11.5 is nothing else than cheap.

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