Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Risk-Aversion Returns After Brief Rally

By MarketPulse (Craig Erlam)Market OverviewMar 04, 2022 12:25AM ET
www.investing.com/analysis/riskaversion-returns-after-brief-rally-200619285
Risk-Aversion Returns After Brief Rally
By MarketPulse (Craig Erlam)   |  Mar 04, 2022 12:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Stock markets were back in the red again on Thursday, as we await further talks between delegations from Ukraine and Russia.

Wednesday’s rebound was predictably short-lived against the backdrop of reports of intensifying attacks by Russian troops as they close in on cities across the country. The sanctions that have been levelled at Russia since the invasion started have been far more severe than many expected and we’re learning more about their devastating impact with every passing day.

While there is some hope that talks between the two countries can yield a breakthrough, it’s tough to see where a compromise can be found or whether Russia is even interested in one. It was involved in talks before it crossed the border and it’s clear now that there was no intention to find a diplomatic solution.

Any rebounds we’re seeing in risk appetite appear more driven by hope than reality and as we’re seeing today, they’re not lasting. And with further sanctions to follow as Russian forces continue to commit atrocities in Ukraine, I struggle to see market sentiment dramatically improving for the foreseeable future.

Powell lines up March hike, ECB minutes allude to hawkish shift

We didn’t hear anything surprising from Jerome Powell during his second day of testimony, with the Fed Chair reiterating the need to deal with inflation now, backing a 50 basis point hike if needed at future meetings, and highlighting the uncertainty arising from the invasion of Ukraine. There appears to be little doubt now that the Fed will hike by 25 basis points in a couple of weeks and again at the following couple of meetings.

There’s been a flurry of economic data throughout the day as well as minutes from the last ECB meeting. There were no enormous surprises from the minutes which highlighted shifting views towards inflation which lay the groundwork for a far more hawkish outlook next week when the central bank has new projections. US unit labor costs were revised significantly higher for the fourth quarter but against the backdrop of strong productivity gains, the response has been relatively mild.

Bitcoin runs into temporary resistance

Bitcoin also pared gains on Thursday, falling close to 4% after running into significant resistance at $45,500. This is the next major hurdle for it as it charges higher on the back of the Russian sanctions and Ukraine crisis. It seems crypto may benefit from the tragic events in Ukraine but to what extent is hard to say. It may well depend on the level of adoption we see over the coming weeks and months. Speculation also plays a massive role in the space though and a move above $45,500 could see it take off regardless.

Original Post

Risk-Aversion Returns After Brief Rally
 

Related Articles

Risk-Aversion Returns After Brief Rally

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email