Positive risk sentiment amid geopolitical tensions – What central banks might have to offer this week

Important news for the week

• Tue, 14th, 08:00             UK        Claimant count change.
• Tue, 14th, 14:30            CA        Consumer price index.
• Thu, 17th, 02:30            AU        Unemployment rate.
• Thu, 17th, 14:15            EU        ECB interest rate decision.
• Thu, 17th, 14:30            US        Unemployment claims /Retail Sales.

Equities

Equity markets resumed the week on a positive note. Supportive results from companies like Blackrock, JP Morgan, and Wells Fargo might further boost markets during the current earnings season. China’s market opened lower but moved slightly higher, while the Hang Seng index remained mostly sideways. China's stimulus efforts appear to be fading without further steps. Geopolitical tensions are having little impact, and potential rate cuts, such as from the ECB, help support indices.

Market talk

The Dollar showed potential weakness on Monday. The EUR remains above support, while the GBP slides slightly. The AUD could gain momentum if it clears the recent resistance. Oil opened lower despite Middle East tensions, and lower prices could follow if tensions ease. Demand appears to be falling, potentially signaling a downturn. Equities started the week higher, with Bitcoin also breaking higher amid positive risk sentiment.

Tendencies in the markets

• Equities positive, USD weaker, cryptos positive, oil weaker, metals positive, JPY weaker.