Expect current events in the Near-East to be a partial driver this week as markets enter a more reactive mode to new information. Despite the conflict, stock markets around the world performed well early this week, with the Dow Jones, S&P and NASDAQ all maintaining their upward momentum that started last Friday. For the time being, hopes of interest rates finally being reigned in are enough to counter-balance geo-political fears.
All eyes on oil this week as WTI and Brent Crude both started the week on a flyer, gaining over 4% on Monday. The move didn’t sustain itself on Tuesday however, future moves very much at the whim of the news cycle for now.
As the Chinese markets opened up again, gold made a bold start to the week, gaining 1.6% on Monday and closing at $1861. Just as with oil however the move didn’t sustain itself during Tuesday’s session.
Asian indices showed strength on Tuesday, in particular the Nikkei 225 which gained 2.43% after a lukewarm start to the week, closing at 31,746. The Hang Seng also climbed 0.84% to close at 17,664. Both continued to show strength in early morning trading on Wednesday.
In currencies, USDJPY continued to appear indecisive yesterday, the brush with the 150 mark only one week prior. The Pound displayed some minor strength on Tuesday, gaining 0.39%. Similar story for the Euro, which managed to gain 0.36% against the Dollar.
Interest rates continue to be at the back of everyone’s mind this week, with Atlanta Federal Reserve President Raphael Bostic stating that monetary policy is in the right place to bring inflation down to the Fed’s goal of 2%. We also have US economic data to look forward to on Thursday, with jobless claims, inflation rates and CPI all on the menu.
