By: Scott Davis
- Data continue to show sequential improvement through the summer, with several positive pre-releases last week (notable given Sept is most important month of the quarter).
- Short cycle ISM and our Melius Sentiment Index continue strengthening to multi-year highs on broad-based positive rate of change in global data.
- Copper prices, a key macro demand indicator, are now up 40% off the lows and continue to march higher. Credit remains highly accommodative and inventories continue to normalize from record levels.
- Industrial stocks are finding some traction, with fund inflows top of the S&P pack. However, sector performance is lagging prior cycle inflection points.