(18 MAY 2020)DAILY MARKET BRIEF 1:Market optimism holding up despite fragile fundamentals

<p>Optimism over warm weather supporting the gradual return to normal activities following a more than two-month lockdown period globally holds equities in demand as commodity currencies hold to their gains with oil prices climbing above $30 for the first time since mid-March 2020 on hope of growing demand and output cuts. There are yet good reasons to consider that a reality check might occur, as market price action appears short-term biased. The remaining 10% of S&amp;P 500 earnings are now turning to cyclicals (i.e. retail, media and travel), one of the industry that was most hit by the pandemic while the 2Q releases are likely to prove worth as the US $3 trillion Coronavirus relief package is expected to face opposition in the Senate after passing through the House of Representatives. Meanwhile, a resumption of Sino-American trade discord after new restrictions were added against Huawei by limiting chips supply favors safe-haven, the dollar gold and eventually Bitcoin instruments shou</p>