Global growth and stocks could be set for lift off, says UBS

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Our call of the day, from a team of UBS strategists, says investors have been too negative when it comes to global growth expectations, and that’s good news...

Aside from a few key earnings reports on Wall Street, investors will get a whiff of how the global economy is doing with a data dump from China due after U.S. markets close Tuesday. Investors will be looking for more evidence that Chinese government stimulus efforts are paying off as they pick through first-quarter gross domestic product, industrial output and retail sales. The country is seen by some as the key to holding up increasingly wobbly global growth, especially if the U.S.

As for how to trade this view, Waldman and the team say a growth upturn would be good for firms selling nonessential items likes cars and clothes that consumers don’t exactly need - these are known as consumer discretionary companies. In tough economic times, that kind of spending gets pared back. They’d also advise getting a little more bearish on utilities, stocks that perform better when growth concerns crop up.

— Topdown Charts April 15, 2019 The market A buyer’s mood is setting in for Tuesday, with Dow US:YMH9 , S&P 500 US:ESH9 and Nasdaq US:NQH9 futures all in the black, after Monday’s session that was slightly negative for the major indexes. See more coverage in Market Snapshot.Europe stocks SXXP, +0.32% are a mixed bag, while in Asia, the Shanghai Composite SHCOMP, +2.39% shot up over 2%, partly fueled by fresh stimulus from China’s central bank.

The return of “Game of Thrones” drew a record 17.4 million viewers on Sunday for AT&T owned cable service HBO.The economy Industrial production and capacity utilization data, along with a home builders index are all on tap for Tuesday.

 

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