Microsoft
Cloud computing proved to be a very tangible business for Microsoft and this is the new arena where they have improved significantly in their earnings, however, in order for Microsoft to stay ahead of the game, they will need to continually evolve in other parts of business because for one, Apple’s new operating system is completely free for upgrade whereas Microsoft charge for upgrades – not a market winning strategy.
Markets
A downgrade for the Russia’s credit rating is the main focal point for the traders today, which could potentially hurt the country’s growth prospects and ripple effects around the globe. Germany, which is the economic engine of the Europe, is heavily dependent on Russia for its export and a step up efforts in terms of sanctions is going to hurt the whole region.
The war of dialogues has already started between the US and Russia, which is a Deja Vue for traders, and this is not looking good in any way for the equity markets and could easily trigger a lot of margin calls for investors, given the level of leverage we have in the markets.
Crude Oil
Given the geopolitical tensions we are facing, we think crude oil could also gain from this situation, especially if we do see another round of sanctions on Russia. A tit for tat reaction from Russia will be inevitable, which will be Russia once again threatening to cut the energy supply for Europe. We think any dips could be a buying opportunity when it comes to Crude Oil under these circumstances.
Disclosure & Disclaimer:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam