Markets are in the rally mode
to start the week. Despite international
tensions from Crimea’s referendum to join Russia, stocks are in a risk-on
scenario. Perhaps investors are sensing
that the Ukraine situation will be handled diplomatically, rather than through
the use of force. Sanctions against
Russia seem to be a token effort on the part of the west and it seems that US
and European protests are lacking substance.
There are some positive economic reports helping the rally. The homebuilders’ confidence index rebounded
sharply this month, and industrial production also had a strong showing. There may also be thoughts that last week’s
market declines were overdone. Gold is
pausing after last week’s big gains while oil continues to retreat. The dollar is stable as are interest
rates. It would seem that the unsettled
international situation could put a dent into this rally at any moment.
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