Tariffs, war, Oil and crypto – Which market gives way first?

Frank Walbaum FX Strategies.Asia

Important news for the day

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Weekly data

In another attempt in finding common ground for peace- talks, US an Ukrainian officials met in Saudi Arabia on Monday. America’s top diplomat stated that the Ukraine would need to give up some territory as a part of agreements to reach a potential ceasefire. The borders from 2014 might not be achieved again. While Russia “can’t conquer all of the Ukraine” the Ukrainian army also won’t be able to push them back all the way to the initial borders.Oil prices have recently fallen and might be poised to push lower. This situation might help markets further and could cause the downside momentum to continue.

Market talk

European stock markets also seem to follow their US counterparts, which had lost some steam yesterday. The slide in the Eurostoxx remains significant, whereas the DAX has started a recovery during today’s trading. Especially US technology stocks (“Magnificient 7”) continue to trade in the red with potentially further negative sentiment ahead. US tariffs and renewed worries about a US recession continue to weigh on markets, as investors shift their money to alternative assets. The crypto market in general looks set to weaken with further potential downside ahead. As the profit taking in Bitcoin continue also altcoins, in particular Ripple might get more beating in the near future.

Tendencies in the markets

Equities weaker, USD weak, cryptos weaker, oil weak, Silver positive, Gold positive, JPY stronger.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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