Global Chips Rally Continues Unabated
Investors continue to price in a riskless economic and market backdrop
Key Takeaways
Oil Slide Gives Stocks Another Lift: The extended decline in the oil price (WTI down -3.0% to $90.80 per barrel) on durable peace-deal hopes (diplomatic progress is overshadowing ongoing skirmishes) has unleashed a sustained positive tone in the U.S. equity market where futures are pointing towards a positive open (Goldman Sachs just lifted its year-end S&P 500 target to 8,000) while the Euro Stoxx 50 has tacked on +0.7%.
Survey Data Keep Showing Weakness: The overseas data calendar was limited to French consumer sentiment for May, which fell to a three-year low of 82 from 84 in April. The incoming survey data in the U.S. has also been streaming in on the soft side, and not just consumer confidence. One would have thought with the action in the energy market of late that items like the Dallas Fed’s manufacturing survey would have come in hot in May, but instead it came in roughly flat, as did the employment component, while new orders rolled over.
