Investors are holding back – Geopolitical risks as a burden

12/04/2018 – 11:10 am: In view of the impending escalation in Syria, investors remain on the sidelines until further notice. Although the US president had rowed back again after announcing his intention to intervene militarily in the conflict, he recently only described this intervention as a possible option. Nevertheless, the scenario of a direct confrontation between the US and Russia in the Middle East has considerable potential. Accordingly, the US stock indices had gone weaker out of trading. The same applies to the stock markets in the Far East.

Against this background, the leading German index shows relative strength with a moderate minus of currently 0.2 percent. The volatility reflecting the uncertainty should remain high in this mixed situation. A tendency is not discernible in this context. Positive and negative news can have a direct impact on the prices and determine the further direction. Against this background, investors are playing it safe and keeping their powder dry until further notice.

In addition to the further development in Syria, economic data from both sides of the Atlantic are also attracting attention today. While February industrial production figures and the most recent ECB meeting minutes need to be evaluated in the Euro Zone, the focus in the USA is on weekly initial applications for unemployment benefits and the development of import and export prices in March.

 

 

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.