- Israel and Iran continued to bomb each other today, a scenario that it used to be considered a potential catastrophic of asset markets. But while the price of oil increased as a result of the conflict, the rise was moderate, and stock investors were easy. However, the US dollar has reached low levels of enthusiasm among institutional investors, according to Bank of America.
Stoxx EUROPE 600 decreased by 0.9 % in early trading, but that was the only drama in the global asset markets so far. The VIX volatility index is to decline after placing the S&P 500 in a strong performance yesterday. S&P futures were only 0.7 % this morning, Premarket.
In Japan, the shares rose, but in China it was flat.
The main surprise this week seems to be almost comfortable and optimistic about investors towards the Israeli conflict. American stocks have risen during the past five trading sessions, as traders are waiting for the interest rate of the US Federal Reserve tomorrow. Federal Reserve Chairman Jerome Powell is expected to maintain rates – any change in his suspension will move the markets.
Why did the inventories ignore the bombing? The institutional bulls returned, according to the latest survey of Bank of America to the managers of international funds. The poll calls 222 puzzle player who have $ 587 billion under management. “In sum, the feelings of investors have recovered to prenatal day levels,” said Michael Hartnett of Bofa and his team to customers in a note seen by war and stagnation. luck.
However, there is still one of the assets that investors hate at the present time and this is the US dollar. The dollar has lost approximately 10 % of its value against foreign currencies this year, According to the DXY index. Investors are now the most weight in the dollar 20 years, according to Bofa. “(The largest) pain trading in the summer is a long time,” said Hartnet and others.
Antonio Rogero of Convera also pointed to the weakness of the dollar: “The increase in oil prices-reaching 12 % on Friday amid escalating geopolitical tensions in the Middle East-was exposed to the state from the safe call of fading. There was a positive force for the dollar, especially in periods of geopolitical risks.
“The only support with the meaning of the dollar is still a difficulty, and now in a full alert mode-the publication of the most softened consumer price index is a long distance. Whether it causes customs tariffs or driven by the high oil prices that wave on the horizon that inflationary pressure remains at the present time.”
Here is a snapshot of the procedure before the opening bell in New York:
- S & P 500 futures contracts It was 0.7 % this morning. The same index Close 0.94 % yesterday.
- the Stoxx Europe 600 0.9 % sank in early trading.
- Japan Nikki 225 0.59 % increased.
- South Korea Cuban It was flat.
- China SSE compound It was also flat.
- the Nasdak compound 1.5 % increased yesterday by paying various technical stocks.
- Coinbase It was 7.7 %.
- I responded It was 6.8 %.
- Baldir It was approximately 3 %.
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