--- title: "EMEA Morning Briefing: Global Chip Rally Boosts Sentiment" type: "News" locale: "en" url: "https://longbridge.com/en/news/287715622.md" description: "European stock futures were mixed following a tech rally in the U.S., while the dollar weakened amid bearish sentiment. Treasury yields fell as markets anticipated a potential U.S.-Iran deal, impacting oil prices. Gold rose as investors sought safe-haven assets amid Middle East tensions. Rising costs of construction materials, including copper and lumber, are straining affordability, with input prices increasing significantly in early 2026, according to analysts." datetime: "2026-05-27T04:27:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287715622.md) - [en](https://longbridge.com/en/news/287715622.md) - [zh-HK](https://longbridge.com/zh-HK/news/287715622.md) generator: "portal-rs" --- # EMEA Morning Briefing: Global Chip Rally Boosts Sentiment MARKET WRAPS Watch For: France consumer confidence survey; no corporate trading updates expected Opening Call: European stock futures were mixed, after Asia stocks also traded mixed. U.S. Treasury yields edged lower, the dollar weakened. Gold rose and oil fell. Equities: European stock futures were mixed after Wall Street staged a tech rally overnight. By focusing on the pace of the rally, investors might be overlooking something even more consequential, according to Ed Yardeni, a Wall Street veteran and founder of Yardeni Research. During periods of irrational exuberance, stock prices tend to rise more quickly than Wall Street's earnings estimates. But in 2026, the opposite is happening. "Analysts raise their earnings estimates because hard data and company guidance give them reason to do so. We would rather see FEMO than FOMO every time," Yardeni wrote. He said "FEMO" stands for "fabulous earnings momentum." Forex: The U.S. dollar weakened as TD Securities maintains a negative, or 'bearish' view on the greenback for the year, its forex strategists said. "We are not convinced it's time to drop the bearish U.S. dollar thesis for 2026 yet." While U.S. economic data momentum has flipped to positive versus the European Union and China, it is more middle-of-the-pack against the rest of the world, they said. Despite the dollar's recent outperformance during the U.S.-Iran conflict, it remains far below peaks from 2022/23. The energy shock weighed on sentiment for importing countries in Europe and Asia, but the AI tailwind for the global economy isn't U.S.-specific, they said. Bonds: Treasury yields fell as markets contemplated the prospect of a deal that would reopen the Strait of Hormuz, but investors still priced a higher likelihood of an interest rate hike than a cut by the Fed this year. Citi analysts said the pricing is misplaced. "We think risks are balanced the other way and that cuts could be priced back in over the next weeks or months." Citi acknowledged that lower energy costs would allow the Fed to focus again on stable unemployment and above-target inflation, which suggest keeping rates on hold. But the analysts said fundamental risks "are balanced toward softer labor markets and slower inflation," making a cut the most likely next move. Energy: Oil declined in as traders weighed the prospects of a U.S.-Iran deal. There's hope for an agreement to reopen the Strait of Hormuz, despite renewed hostilities. Tehran's signaled that the strikes wouldn't derail talks, while U.S. Secretary of State Rubio said it would take a few days to iron out a potential agreement. Uncertainty remains high. Capital Economics' Kieran Tompkins noted that while oil options data suggests investors expect prices to ease over the next three months, they have unusually low conviction. Options suggest investors see flows via the strait resuming soon as the most likely outcome, but they are implicitly placing a 37% chance on oil above $100 a barrel in three months, he said. Metals: Gold rose, rebounding from a fall in the prior session. An escalation of tensions in the Middle East following U.S. military attacks on Iranian targets Monday could be prompting capital to flow towards safe-haven assets including the yellow metal, said XS.com's Antonio Di Giacomo in an email. - Copper prices that have risen to all-time highs are among several building materials that have surged in cost lately, threatening to add to home prices at a time when affordability is already strained. It isn't just copper that is boosting construction costs and busting renovation budgets. Lumber prices are up more than 30% from December's lows, largely due to import taxes on Canadian wood and a string of sawmill closures. Aluminum is trading near record highs in London and is even more expensive in the U.S. due to Trump's 50% tariff on the metal. Diesel prices are roughly 50% higher than they were before the Iran War began in late February, lifting the cost of delivering bulky materials, such as concrete and drywall, to job sites. "Input prices have now risen more during the first four months of 2026 than over the prior three years," said Anirban Basu, chief economist at trade group Associated Builders and Contractors. "These cost pressures will likely weigh on construction activity over the coming months." TODAY'S TOP HEADLINES Iran Pursues Deal That Brings Economic Relief Without Handing Trump Victory Iran is pursuing two intertwining goals in its negotiating strategy with the U.S., say Iranian officials and Arab mediators: securing financial relief for an economy that is under severe strain without giving enough ground on its nuclear program to allow President Trump to claim victory. Iran mostly shook off an overnight skirmish with U.S. forces in which it lost several Islamic Revolutionary Guard Corps fighters, staying at the negotiating table on Tuesday. Tehran has been seeking economic relief by regaining control of some of the $100 billion in assets frozen by the West and regaining access to world oil markets, these officials say. Polymarket, Kalshi Face Spanish Ban The Spanish government is moving to block Polymarket and Kalshi, saying the two prediction-market platforms might be breaking the law by operating in the country without a gambling license. The ministry in charge of consumer affairs said it had issued an order to block Polymarket and Kalshi's websites as a precautionary measure as officials look into possible violations of gambling laws, proceedings that are expected to stretch between three and four months. Europe Is Starting to Think Putin Will Expand the War Beyond Ukraine TALLINN, Estonia-Russia is stuck on the Ukrainian battlefield and lashing out with massive strikes on Kyiv. The growing fear in European capitals is that President Vladimir Putin will try next to reshuffle the cards by expanding the conflict to Europe. In recent weeks, Russia has made increasingly bellicose statements against the Baltic states. It has threatened to bomb "decision-making centers" in Latvia after accusing the country of hosting Ukrainian drone operators, an allegation denied by the Latvian authorities. Air-raid alarms were sounded in Lithuania last week, forcing the government into a bunker, after suspected Russian drones approached its airspace from Belarus. Apple, Google Warn Encryption Services at Risk With Canada Bill OTTAWA-Apple and Google warned Canadian lawmakers that they risk putting their citizens' privacy and security at risk under a government proposal to give police access to information on their digital devices. Executives from the technology companies said a proposed bill would force them to change their products to allow for more surveillance and potentially compromise encrypted systems. Write to singaporeeditors@dowjones.com Expected Major Events for Wednesday 05:00/FIN: Apr Labour force survey, incl unemployment 06:00/EU: Apr New Passenger Car Registrations in Europe statistics (EU27 + EFTA3) 06:45/FRA: May Consumer confidence survey 07:00/SVK: Apr PPI 08:00/AUT: May Austria Manufacturing PMI 08:00/ICE: Apr Labour Force Survey 08:00/ITA: Mar Industrial turnover 09:00/MLT: Apr PPI 23:01/UK: Apr Zoopla House Price Index 23:01/UK: Apr UK monthly automotive manufacturing figures 23:01/UK: CBI Service Sector Survey All times in GMT. Powered by Onclusive and Dow Jones. Write to us at newsletters@dowjones.com We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions. This article is a text version of a Wall Street Journal newsletter published earlier today. (END) Dow Jones Newswires May 27, 2026 00:17 ET (04:17 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. ### Related Stocks - [600547.CN](https://longbridge.com/en/quote/600547.CN.md) - [600489.CN](https://longbridge.com/en/quote/600489.CN.md) - [82824.HK](https://longbridge.com/en/quote/82824.HK.md) - [512760.CN](https://longbridge.com/en/quote/512760.CN.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [NUGT.US](https://longbridge.com/en/quote/NUGT.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [GDX.US](https://longbridge.com/en/quote/GDX.US.md) - [09824.HK](https://longbridge.com/en/quote/09824.HK.md) - [159998.CN](https://longbridge.com/en/quote/159998.CN.md) - [GDXW.US](https://longbridge.com/en/quote/GDXW.US.md) - [GDXY.US](https://longbridge.com/en/quote/GDXY.US.md) - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [588170.CN](https://longbridge.com/en/quote/588170.CN.md) - [562820.CN](https://longbridge.com/en/quote/562820.CN.md) - [159995.CN](https://longbridge.com/en/quote/159995.CN.md) - [GDXJ.US](https://longbridge.com/en/quote/GDXJ.US.md) - [02824.HK](https://longbridge.com/en/quote/02824.HK.md) - [561600.CN](https://longbridge.com/en/quote/561600.CN.md) - [RING.US](https://longbridge.com/en/quote/RING.US.md) - [588200.CN](https://longbridge.com/en/quote/588200.CN.md) - [512480.CN](https://longbridge.com/en/quote/512480.CN.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [TD.US](https://longbridge.com/en/quote/TD.US.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) ## Related News & Research - [BOCI Slightly Raises SD GOLD TP to HKD40.36; 1H26 Results Beat](https://longbridge.com/en/news/297472745.md) - [PRECIOUS-Gold hits over two-week low, US jobs data in focus](https://longbridge.com/en/news/297713002.md) - [Nvidia Just Invested $3.5B in a Major Qualcomm Rival's AI Chips. 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