While U.S. equities marked time Wednesday morning, Bloomberg reports a poll of the users of its professional terminal turns up strong bullishness on the Standard & Poor’s 500. While Bloomberg has been querying its customers only since 2007, it was only the second time a majority of them were looking for a rally in the next six months.
Globally, the biggest increase in bullishness was seen for the Japanese stock market while the highest level of optimism was expressed for Brazil’s market. Bullishness in Switzerland hit a record as nary a discouraging word was voiced for equities.
Notwithstanding the optimism about all things global and especially in the emerging markets, exchange-traded funds tracking some of those marts are off on relatively heavy volume Wednesday morning in a continued reaction to Tuesday’s monetary tightening by the Chinese central bank and Google‘s (GOOG) threatened withdrawal from China.
The ETF from the Bloombergers’ favorite bourse, the iShares MSCI Brazil Fund (EWZ) is off about 0.9% Wednesday and has been rolling over since its peak in early December. Meantime, the iShares FTSE/Xinhua 25 ETF (FXI), is down another 1.7% Wednesday and is 9% below its peak touched last November.
The Bloomberg survey also found the most bearishness on Treasuries in two years. After surging 1.7% Tuesday as investors retreated from risk markets, the iShares Barclays 20+ Year Treasury Fund (TLT) is off slightly ahead of today’s auction of new 10-year notes.
–Randall W. Forsyth
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