This sums up the situation in markets right now: Risk stays on the defensive ahead of European trading
It’s all about the panic and anxiety surrounding the situation in the Middle East but as always in times like these, I tend to think about the idea of buying value, selling hysteria. This from the Russia-Ukraine conflict last year: Buy value, sell hysteria
The only tricky part for risk trades right now is that we’re also caught in the midst of a bond rout in the bigger picture. And so, that might be an overwhelming factor that could win out in the end and keep sentiment more on the defensive side overall.
And with it being a US bond market holiday today, it’s not going to make things easier to read into the reactions later on. As for European trading, the focus will stay on risk flows for now as there won’t be much in terms of data to really shake things up.
We’ll have German factory output and Sentix investor confidence among the only few notable releases today.
0600 GMT – Germany August industrial production
0800 GMT – SNB total sight deposits w.e. 6 October
0830 GMT – Eurozone Sentix October investor confidence
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.