Philadelphia Fed’s May Manufacturing Index Sees Historic Surge
The Philadelphia Federal Reserve’s May Manufacturing Business Outlook Survey reported a historic increase in the Future New Orders diffusion index, jumping over 40 points. This surge has impacted global risk markets and provided a macro catalyst for crypto traders.
Key Points
- The Future New Orders index recorded its largest spike since its inception in May 1968, with a +4.3 standard deviation move.
- This increase surpasses the decline during the 2008 Global Financial Crisis.
- Analyst Julien Bittel linked this trend to tighter financial conditions in Q4 2022 and suggested a recovery similar to early 2017.
- Current market sentiment indicates a shift towards bullishness as purchasing managers’ expectations evolve.
- Crypto assets reacted moderately; Bitcoin fluctuated around $104,000 and Ether near $2,600.
- Market experts noted that many investors are under-positioned for potential growth surprises.
- A weaker dollar and declining real-yield expectations favor non-yielding assets like cryptocurrencies.
- The total crypto market cap is currently $3.28 trillion.
