Markets Rally as Geopolitics Turns More Positive
European stocks markets and US futures are in relatively buoyant mood while oil prices fell over 2% on more hopeful signs of a peaceful end to the Ukrainian crisis.
Yesterday, the S&P500 pushed off the Fib level (23.6%) of this year’s high to low move at 4370. But prices remain below the 200-day simple moving average and the next Fib level (38.2%) at 4453/4456. Any more concrete assurances from the main man in the Kremlin would see more buyers potentially enter the market, with targets above including the previous recent highs just below 4600, which includes the 100-day simple moving average.
Recent safe haven buying saw gold hit eight-month highs earlier this morning at $1879. Several other factors have also encouraged buying of the precious metal lately. Rampant inflation with oil nearing $100 while at the same time hurting global growth and possibly reducing the number of future rate hikes, has no doubt helped.
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