Europe

A curious dichotomy has emerged in global fund flows.

According to the latest flow report from BofA's Michael Hartnett, "it's risk-on in Bonds, it's inflation-on in Stocks, and EM is now playing role of cyclical catch-up trade." In short, in the last week the Trump Trade has emerged from the dormancy in which it had faded for the past month.

But when one looks at where the money is flowing, it is going everywhere except where one would expect, as US stocks continue to be shunned, based on EPFR data.

Here are the details.

A British high court has rejected an appeal by government lawyers to withhold compensation payments to children who developed narcolepsy as a result of a swine flu vaccine. Around six million people in Britain were given the Pandemrix vaccine made by GlaxoSmithKline during the so called swine flu pandemic in 2009-2010… however the vaccines were withdrawn after doctors noticed a sharp rise in narcolepsy among those who received it.

Update: It appears expectations of an imminent deal may be premature, because this just hit the tape:

• GREEK OFFICIAL SAYS NO BAILOUT DEAL EXPECTED IN MEETING TODAY.

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In a welcome sign the latest conflict between the troubled Greece's lenders may be thawing, Reuters reports that Euro zone creditors and the International Monetary Fund have agreed between themselves to present a common stance to Greece later on Friday in talks on reforms and the fiscal path Athens must take, euro zone officials said. 

Gold Prices Up 5.8% YTD - Trump ‘Honeymoon’ Ends

Gold prices continued to shine this week reaching $1,244.70 per ounce and and has posted gains in five of the last six weeks. This week it reached a new three-month high - it’s highest since the Trump win and has climbed over 6% this year, beating the gains made in the same period in 2016.

This is the chart that "horrifies" the CEO of the world's largest asset manager. This is the chart that has Larry Fink "seeing dark shadows in the market." Given the average investor's mainstream-media-trained hive-mind, we suspect some will be surprised by his choice...

As we detailed yesterday, "I see a lot of dark shadows," Fink said at the Yahoo event quoted by Reuters. "The markets are probably ahead of themselves."