How do you solve a problem like the lira?
As traders around the world rubberneck, the beaten-up lira TRYUSD, +5.5742% is managing to stabilize somewhat in recent trading, and stocks worldwide are rallying after their recent Turkey-inspired trouncing.
So what’s the next move for investors?
“For those in the asset-allocation business, it’s probably a good time to add a little exposure to international equities and lower exposure to U.S. equities,” say Bespoke Investment Group’s analysts for our call of the day.
They’ve come to that conclusion after looking at 22 ETFs that track overseas stocks. In other words, funds that American investors use to gain exposure to the rest of the world, from the Vanguard FTSE Emerging Markets ETF VWO, -1.61% to the iShares Europe ETF IEV, -0.27% .
It’s not a pretty picture for these ETFs, but the selling looks increasingly overdone, according to Bespoke’s team.
“13 of 22 ETFs have moved lower into oversold territory over the last week, meaning they’re more than one standard deviation below their 50-day moving averages,” the analysts write, referring to a sizable move under a key chart level.
Bespoke’s crew isn’t alone in seeing a buying opportunity. However, MarketWatch’s Mark Hulbert, for example, spots a chance to buy U.S. stocks rather than venture abroad.
To be sure, the Bespokers aren’t shying away from the ugly action by international equity ETFs, even as they sound bullish. These funds look “stuck in the mud,” as they’re in the red on a year-to-date basis and over the last week, the analysts say.
Key market gauges
Futures for the Dow industrials YMU8, +0.32% , S&P 500 ESU8, +0.30% and Nasdaq-100 NQU8, +0.37% are higher, after the Dow DJIA, -0.50% , S&P SPX, -0.40% and Nasdaq Composite COMP, -0.25% lost ground yesterday.
See the Market Snapshot column for the latest action.
Turkey’s currency shouldn’t be getting all the attention, suggests our chart of the day from Marc Chandler at Brown Brothers Harriman.
Other strategists are also sounding bearish, saying: “If the safe-haven bid continues, the euro will remain under pressure.”
Mark Mobius says capital controls in Turkey are a “real possibility,” and they would be a “very, very bad example for other emerging markets.”
Beijing’s latest data dump suggests the Chinese economy is facing increased headwinds amid rising trade tensions with the U.S.
Many Uber drivers are taking unnecessarily longer routes to drive up fares, though it’s the ride-hailing company that’s responsible for covering the bigger bill.
Small-business optimism has hit its second-highest level in history, while prices for imports and exports are also due for release before the bell.
Check out: MarketWatch’s Economic Calendar
Police in London today detained the driver of a car that crashed into barriers outside the U.K. Houses of Parliament, injuring pedestrians.
“She has a clear vision to champion free trade, develop a sound immigration policy, fix America’s crumbling infrastructure, and support students from classroom to career.” —The U.S. Chamber of Commerce backs Democrat Mary Glassman for Connecticut’s 5th congressional district.
It’s a rare move for the Chamber to weigh in on a Democratic primary, Politico reports. The endorsement comes as business groups battle with President Donald Trump on trade, immigration and more.
Connecticut, Wisconsin, Minnesota and Vermont are hosting elections today as primary season winds down. Trump supports Wisconsin Gov. Scott Walker, tweeting that voters should back Walker in the Republican primary because he “brought the amazing Foxconn 2354, -1.85% to Wisconsin with its 15,000 jobs — and so much more.”
Vienna, Austria’s capital, now ranks as the world’s most liveable city, topping Melbourne.
457 people with electric guitars try to break a record — here’s their sound.
Wanted: Someone who will move to an island “paradise” and care for 55 cats.
Here’s why employees shouldn’t be expected to check their email after hours.
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