Negotiation optimism continues in global markets

negotiation optimism continues in global markets 0 U1wYQuZZ

After the concrete statements came out of the Istanbul negotiations, the rally that started in stocks and bonds is being carried over to the new trading day.

MSCI Asia Pacific index rose for the second day, while Hong Kong Hang Seng, China CSI 300 and South Korea Kospi were up.

Japanese stock markets, on the other hand, diverge negatively as the yen strengthens by 1 percent against the dollar.

S&P 500 index closed with 1.2 percent for the fourth day in a row, while futures contracted slightly. The dollar also fell as the negotiations progressed.

The Bloomberg Dollar Index is down 0.3 percent. Oil prices are rising this morning amid doubts over a Russian pullback after two days of steep declines. Brent May contract barrel price rises by 0.8 percent to $ 111

“The rally may not last long”

The light of hope in the war in Ukraine The emergence of the stock market rallied widely, tech giants such as Amazon and Apple erased this year’s losses. However, according to some investment banks, the rally may not be long-term.

Morgan Stanley Strategist Srikanth Sankaran, with the optimism of Ukraine-Russia talks, thinks that the rally in the stock and private sector bond markets is a temporary move. “The focus will definitely return to the Fed’s hawk,” Sankaran told Bloomberg TV. He expressed his opinion that the rally will disappear in the short term as the size of the Fed’s rate hikes is priced in the markets.

According to Bank of America, US stocks, which have risen 11 percent in the last two weeks, bear the traces of a “bear market rally”. According to BofA strategists, including Gonzalo Asis and Riddhi Prasad, the occasional rallies reflect typical recovery efforts seen in a bear market. Strategists think that with worsening macroeconomic indicators and the unfriendly Fed, it is not possible to sustain the rise in US stocks.

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