Risk sentiment seemed to have improved drastically today. There are talks that both Russia and Ukraine are softening their tone, which might give an exit for Russia abandoning the invasion eventually. Germany DAX is leading major European indexes higher with more than 5% rebound. US futures also point to higher open. Both gold and oil dip too. In the currency markets, Euro is currently the strongest one for the day, followed by Aussie and then Kiwi. Yen is the worst performer followed by Dollar and Swiss Franc. Technically, attention will be paid to how US stocks close today, particularly the volatile NASDAQ. A close above 13837.58 resistance would definitely be a positive sign. Further break of 55 day EMA in the coming days would suggest that correction from 162122 (or at least this falling leg of the corrective pattern) has completed, and turn near term outlook bullish for stronger rebound. Such development would also be reflected in the currency markets with sustainable rebound in Euro. However, failing to break through 13837.58 will keep status quo, at least for now, and indicate that risk sentiment remains fragile. In Europe, at the time of writing, FTSE is up 1.64%. DAX is up 5.24%. CAC is up 4.73%. Germany 10-year yield is up 0.0721 at 0.187. Earlier in Asia, Nikkei dropped -0.30%. Hong Kong HSI dropped -0.67%. China Shanghai SSE dropped -1.13%. Singapore Strait Times rose 1.48%. Japan 10-year JGB yield rose 0.0121 to 0.167. |
