Can’t fight the Fed Tech – The Fed is backing the broader financial system with their balance sheet, and investors are backing the broader market via the tech sector. Even with the underperformance of tech in Asia last night (TSM was down 6% locally at one point, Samsung -4%), US tech companies are shrugging off any 5G China slowdown concerns (Nikkei article here). Mega tech was indicated higher pre-open and have not let up since. Reits actually are the best performers as US Treasury yields move lower (10-yr at 0.64%). Energy is following Crude (-0.79%) lower, and the sector (XOP) is down 2.6%. Oil has been relatively stable, but any test of $40 could test the broader S&P strength since the commodity can be seen as an economic demand indicator.
The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.
Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.