Risk appetite on the first day of the new week

A new day, a new week, investors in the Far and Middle East have laid a positive foundation that will serve the European and US markets to continue their growth. Wilbur Ross has announced that it is working to lift the ban on Huawei from trading with US companies, and confirmed the significant progress the two countries are making at this stage. In addition to the trade war with China, he also spoke about the European front. It seems that the US may not, after all, impose tariffs on the car industry in Europe. Certainly Ross lifted the spirit of the market.

Cash flows took the expected direction: up, colored green. Risky assets are currently the hot topic in the market, and we expect investors to buy at higher prices. This was evident in the Asian session, and early indications of European futures (and of US ones) point to a strong opening north. Indices, stocks and bonds will be the potential niche of "smart money" today.

By contrast, gold, the Japanese yen, the Swiss franc and the US dollar are inferior, including the defensive sectors and bonds. The Australian dollar and the Kiwi still stand as the strongest in FX markets, and the worst performing currency remains the Swiss franc. The euro is holding positions and the pound will "listen" for Brexit news.

Due to the risk on regime, we will expect movement of precious and industrial metals. We believe that gold as a safe heaven asset will remain under pressure along with silver, but aluminum, nickel, copper, zinc and platinum will certainly be restored in the prospect of a trade and a renewed demand for industrial metals.

Energy Sector: Petroleum (BRENT and WTI) begins the week with a catalytic converter, and at this point we are talking about gaining profit. Saudi Aramco's IPO received the green light, with an estimated $ 1.5 trillion so far. Black gold will continue to seek direction today.

Gas is at a key level at a price of $ 2.70, entering a strong seasonal period of the resource. We expect the price to continue rising with the background of severe winter forecasts for the United States and strong consumption.

On the crypto front, Bitcoin remains in the range after the price jumped nearly 40% last Friday and Saturday. There is currently no clear catalyst for taking a specific direction.

Again the question today will be: Will they make new, sustainable peak markets or will they rise to the top?

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response