- Israel and Iran continued to bomb each other today, a script that was previously seen as potentially catastrophic for asset markets. But while the oil price rose as a result of the conflict, the growth was moderate, and the stock investors are taking it easy. However, the US dollar has reached historically low enthusiasm among institutional investors, reports Bank of America.
Stok -Europa 600 at the beginning of trading decreased by 0.9%, but it was the only drama in the world’s asset markets. The VIX volatility index is in the retreat after yesterday S&P 500. The S&P 500 futures were excluded by only 0.7% today, the press.
In Japan, the shares grew, but in China they were equal.
The main surprise this week seems a relaxed, almost raised attitude of investors to the Israeli-Iran conflict. Over the last five trade sessions, the US has increased as traders are expected to decisions on the US Federal Reserve rate. The Fed Chairman Jerome Powell is expected to keep the same bets – this will change his comments that move the markets.
Why do stocks refuse to bomb? The institutional bulls have returned, according to the last poll of the Bank of America global funding executives. During the poll, 222 participants who have $ 587 billion under the guidance calls for. “The essence: Investor sentiment is recovering with the Goldilocks Bull level as afraid of trade war and recession,” said Michael Hartnett Bofa. Wealth.
However, there is another asset that investors hate now and it’s the US dollar. This year’s dollar lost almost 10% of the cost compared to foreign currency, According to the Dxy index. Currently, investors are the most insufficient weight in dollars in 20 years, BOFA reports. “() The greatest summer trade in pain is long,” Hartnet said.
Antonio Rugir from the converium also noted the dollar’s weakness: “Friday on Friday 12% amid escalation of geopolitical tensions in the Middle East even more exposed the dollar that disappears in security. A distinctive diversion is: oil rally, but the dollar is not released. during periods of geopolitical risk.
“The only significant support of the dollar still remains the fed-free fed, which has now returned to the full alert mode-the mildest IPC in the past. It be a tariff or due, raising oil prices exceeding inflation pressure, put the Fed in a more stringent Stage to date. ”
Here’s a picture of the rally before the bell opening in New York:
- S&P 500 futures 0.7%were disabled this morning. Index Yesterday closed 0.94%.
- A Stoxx Europe 600 She sank 0.9% in the early trading.
- Japan Nikkei 225 increased by 0.59%.
- Casppi South Korea was flat.
- China Sse Composite It was also flat.
- A Nasdaq Composite Yesterday grew by 1.5%, moving different technological stocks.
- Base increased by 7.7%.
- Reddit increased by 6.8%.
- Tippin was raised by almost 3%.
