Energy stocks, TIPS see demand on Big Tech fatigue, slowing rotation trade | MarketTalk: What’s up today?

Show notes

A big week of central bank decisions is coming to an end with the central bankers bathing in uncertainty of the tariffs and the economic implications of the rapidly escalating trade war. The US stock markets couldn’t extend the Fed optimism into a second session as FedEx – that’s results are seen as an indicator of economic health – lowered its profit forecast for the third straight quarter. The rapid loss of appetite hints that there is a stronger case for a further selloff in US stocks than a sustainable rebound.
Capital flows toward the European equities were the major theme of the Q1 but flows toward the European equities and the euro could start slowing in Q2 as many investors now consider that most of the upcoming European infrastructure and defence spending is already priced in.
Another leg of the rotation trade is also showing signs of weakness this week. The Hang Seng index was down more than 2% yesterday and shed another 2.40% today on the waning stimulus-backed purchases and the tariff shenanigans.
Appetite loss and rising inflation expectations back oil and gas stocks and TIPS.
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