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For long-term investors, could see more attractive return opportunities down the size spectrum. Small caps continue to trade at a steep historical discount to large caps on the majority of valuation measures tracked and are less stretched vs. their own history than large caps despite the US recovery so far. The historical relationship between forward P/E and returns suggests outperformance of small over large caps for the next decade, with potential for mid-single-digit annualized returns for the Russell 2000 – higher than de minimis annualized returns our valuation framework forecasts for large caps. @BoA

Avianca Holdings SA's stock has dropped 45% in the last week as the Colombian airline contemplates a bankruptcy exit strategy that will almost certainly render the equity worthless. According to data collated by Bloomberg, the airline, which was forced into Chapter 11 last year due to the pandemic and travel bans, plunged 6% in Bogota trading Monday, extending losses for the fifth day. On Monday, shares were trading at roughly 119 pesos (about 3 cents). According to a regulatory filing, a US judge will review the airline's Chapter 11 departure strategy, which includes the possibility of transforming some of its bankruptcy loans into stock in a reformed holding company. @Bloomberg

European stocks fell on a hazy picture for global growth and as investors awaited the European Central Bank's statement on Thursday. In London, the Stoxx Europe 600 Index was down 1%, with losses led by automakers, banks, and the construction industry. Miners and technology did better than the rest of the market, but all sectors were down. The first 10 minutes after European market opened saw nearly 58,000 Euro Stoxx 50 future contracts change hands, the largest volume since at least mid-July. @Bloomberg

Keyence Corp. and Murata Manufacturing Co. jumped in Tokyo trading today after the two were announced as additions to the Nikkei 225 Stock Average in a major shake-up to the blue-chip gauge. Gains in Nintendo Co., widely picked beforehand to become a member, were more muted. The three companies’ stocks will be added on Oct. 1. @Bloomberg 

The Nikkei 225 Stock Average touched a level above 30,000 for the first time since April as a reshuffle of the blue-chip gauge added to a wave of positive sentiment on Japanese equities.@Bloomberg