Subscribe to receive these charts every morning!

1. China and U.S. agree to slash tariffs for 90 days while they negotiate.

Moving to a 10% tariff world?

• China to Lower Tariffs on US Goods to 10% From 125% for 90 Days

• US to Cut Tariffs on Chinese Goods to 30% From 145% for 90 Days

This rebound is really messing with the minds of equity investors, pushed to the limit by weeks of tariff chaos.

But, as uncomfortable as it may feel, “chase the rally” has become the mantra for now.

There are signs of FOMO among investors with the size and speed of the rally leaving many behind. History suggests that sharp market reversals like these can end badly when the economy is heading into a depression. “V-shaped bottoms have occurred often since the global financial crisis. Nobody wants to miss another, so the natural inclination is to wonder, ‘Is that it?’” write strategists at SentimenTrader. “Based on the breadth of the rally, it does seem more likely than usual that the rally is sustainable. “It’s kind of like building the foundation of a house — the more stocks that are participating, the stronger that this market is,” said Craig Johnson, chief market technician at Piper Sandler & Co. “Why does breadth matter? It tells me just how many stocks are working.”

2. The MSCI Asia Pacific Index headed for its highest close since October.

Chinese tech names Tencent and Alibaba and Taiwan’s TSMC offered the biggest boosts to the benchmark. With monday’s advance, the onshore CSI 300 Index and the Hang Seng Index both recouped their losses since Trump announced sweeping tariffs on April 2.

Overall, global funds have been piling back into Asian stocks as the attraction of soaring currencies and resilient earnings offsets concern that higher US tariffs will sap the region’s economic growth.

3. Foreign ownership of US financial assets.

“The de-dollarisation and the shift away from USD assets has been at the front and center of the interaction with investors over the past few weeks.

After decades of substantial investment and strong returns, foreign investors hold sizable positions in US financial markets worth $56.6 trillion by the end of 2024, up from $2.2 trillion from the end of 1990. This includes $16.5 trillion of equities and $14.5 trillion of debt securities, which means foreign investors hold about 20% of US equities, and about 30% of both US Treasuries and corporate bonds.

Modest foreign capital repatriation and increases in FX hedging could put some near-term pressure on the USD.

Beyond the cycle, a longer-term structural USD decline cannot yet be ruled out given the expensive entry point and other risks like the fiscal debt, global trade fragmentation, and policy-driven weakening.”

Source: JPM

4. Thematic investing.

Morgan Stanley expects 4 major themes to play a leading role in driving markets: Multipolar World, Tech Diffusion & AI, Future of Energy, and Longevity. Here are their thematic stockpicks.

5. Novo Nordisk in a visual.

Novo Nordisk’s Q1 revenue rose 19% Y/Y to DKK 78.1 billion ($11.9 billion), driven by a 67% surge in obesity drug sales to DKK 18.4 billion, though Wegovy sales fell short of estimates, down 13% sequentially to DKK 17.4 billion. Operating profit increased 22% to DKK 38.8 billion, but the company lowered its 2025 outlook due to competition from compounded GLP-1 drugs, now expecting revenue growth of 13% to 21% and operating profit growth of 16% to 24%.

Not a subscriber yet?