Investors are Holding Back – Geopolitical Risks as a Burden

By 12/04/2018News

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.

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