1. Rising bond yields are pressuring stocks.

Hawkish monetary policy, renewed geopolitical and inflation risks, and rising fiscal concerns are converging to maintain the upward pressure on global long-end yields.
Federal Reserve Chair Kevin Warsh has reset expectations for the outlook. In a speech late last week, he signalled policymakers could move if price pressures fail to show signs of easing.

Below: Budget deficits

2. ECB’s Kocher says Europe’s economy is gaining momentum.

Several brokers are confirming the ECB’s view.
UBS says the recovery in European small and mid-cap stocks is gaining traction, as their macro model now puts the probability of economic expansion at 64.5% and earnings revisions turn positive.
European positioning remains the strongest among developed markets, according to Citi strategists, despite a slight deterioration in sentiment.
Technically, the Stoxx 600 still has the benefit of the doubt. The index remains inside the ascending channel that has framed the advance since spring and above the rising 50, 100 and 200-day moving averages.
The easy part of the summer rally may be over. The trend, for now, is still up.

3. All-in on US equities.

NAAIM Exposure Index climbed to 102.7, the highest reading in over 2 years.
The NAAIM Exposure Index reflects the actual equity exposure of professional institutional managers. The index ranges from –200% (double short) to +200%.

4. MS names Legrand 'top pick' on earnings growth potential.

Morgan Stanley names Legrand its new "top pick" as the stock's recent underperformance vs peers does not reflect its earnings growth potential.
The broker says Legrand has de-rated by roughly 20% vs electrification peers, like ABB or Schneider Electric, despite similar earnings upgrades.
They see upside to 2027 growth estimates from strong data centre demand and limited risk of order-related disappointment, and describe Legrand as "as the best of both worlds".

5. No one wants to drink anymore.

Cognac and whiskey warehouses are stuffed with barrels of aging spirits that were laid down in good times that no one wants to drink anymore.
Social-media trends and rapid shifts in drinkers’ behavior are creating boom-and-bust cycles in the alcohol industry.

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