U.S. flags hang at the New York Stock Exchange in Manhattan. Photo: Reuters, Andrew Kelly

It’s starting to look like a pattern. At 2 pm, the Germany ETF (ticker EWG) was up by 0.7% both on nominal performance and a rising euro. Non-Japan Asia (ticker AAXJ) was up 0.25% on mixed but generally positive performance overnight in Asia. Turkey’s ETF was down despite a rise in the Turkish lira following this morning’s benign CPI release, mainly due to a sharp decline in the steelmaker Eregli Demir following government jawboning against price increases. The Latin America ETF (ticker ILF) rose sharply as the Brazilian lira bounced with the overall weaker dollar.

Meanwhile, market pacesetter General Electric was down 3.5% after Deutsche Bank questioned whether its cash flow could support earnings and downgraded the stock to “sell.” Morgan Stanley was all over the airwaves with a “big call” to buy the US market on confidence that tax reform would pass this year. If MS is right about the politics, the US stock market will have a reason to advance, but Asia Unhedged remains skeptical for the moment.