Bullish mood at risk, oil up on revived Ukraine tensions [Video]
|Asian stocks kicked off the week on a bullish note to catch up with the American session gains on Friday. Softening oil and commodity prices, combined with the softening University of Michigan expectations on five-year inflation survey, and quarterly rebalancing of portfolios explained gains.
BUT, the size of the rebound remains worrying, the market volatility remains high, and the gains may not last long.
Russia bombed Kiev this weekend, as a sign of a renewed escalation in the Ukraine war. G7 leaders hinted at more sanctions against Russia. News of further escalation between Russia and the West is pushing oil prices higher this morning.
Investor attention will slowly start shifting to the second quarter earnings to give a better idea on how the Fed tightening and the persistent inflation impacted the company earnings in the latest quarter.
Nike and Micron will be in focus this week, as US banks are due to release earnings in about two weeks.
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