Daily market commentary: A sense of it getting closer to de-escalation in the war in Ukraine, even if only temporarily, has been rising in the markets


Gold prices dropped slightly during early Thursday trading but remained within the narrow range where they have been over the last week. The brutal reality of war in Ukraine continues on the ground but a sense of it getting closer to de-escalation, even if only temporarily, has been rising in the markets. As the safe-haven trade that propelled the price of the precious metal to above $2,000 per ounce earlier in the month eases, traders’ expectations over what the Fed will do over the next few months comes once again under the spotlight. The latest signs emanating from the US central bank point at a strong determination to bring inflation under control, with interest rates likely to rise quickly; a scenario that, in the absence of fresh geopolitical concerns, will be likely to weigh on gold prices.

Ricardo Evangelista – Senior Analyst, ActivTrades

European Shares

European shares opened moderately higher on Thursday, following a mixed trading session in Asia, as investors brace for a busy day on the macro front. Euro bond markets traded slightly up as well this morning, confirming hedging moves from portfolio managers against today’s risk and market volatility that will be brought by a batch of Eurozone PMI releases, a decision on rates from the Swiss National Bank as well as the highly awaited NATO summit in Brussels. Even if a certain degree of confidence seems to remain for equity markets so far, the current high market volatility and global growth uncertainties sparked by a range of risks  (Central Banks policies, Commodity crisis, geopolitical tensions) makes it really difficult for investors to balance their portfolios. Today’s session is likely to remain volatile and without clear direction prior to some expected macro developments. Paris has registered the best performance of the Eurozone so far as the CAC-40 index is trading above the 6,600-pts mark, despite prices consolidating inside a tiny range since last week.

Pierre Veyret– Technical analyst, ActivTrades

Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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