Mixed sentiment early morning, as the pound still looks like the best currency along with the Canadian backed by BOC and oil – while the Australian is trading down due to poor retail sales data.
The big focus of the markets again falls on the risk sentimentality and, of course, trade relations between the US and China. Overall, the risk remains balanced for the time being, with the partial recovery of the indices succeeding in giving hope to market participants.
However, there are many other topics that dominate, such as the strength of the pound and the Canadian, for example, and the volatatility of the Aussie. Oil will also be in focus today with the start of the OPEC meeting in Vienna today.
Despite the uncertainty in the market, there are signs that the stock rally will not end just like that. A good measure of sentiment is the actions of hedge funds. Hedge funds continue to accumulate serious investment in the technology sector, regardless of geopolitical and macro environment. The promising forecasts of companies and the potential for revolutionary technological advancements support the thesis of the long-term appreciation of these companies. The next sector – Staples – is also progressing significantly, but rather as a hedge. This is the so-called. consumer defense sector, which includes companies that produce food, beverages and non-durable household goods and products. The sector also includes companies that sell food and pharmaceuticals.