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The Central Bank of Morocco kept interest rates at 2.25%.December 16th - According to Bank of Americas latest global fund manager survey, investors reduced their holdings of the euro in December. Investors also reduced their holdings of bonds and healthcare stocks, while increasing their holdings of materials, technology stocks, and US stocks. The survey also showed that a net 13% of investors believe the euro is undervalued, a figure unchanged from the previous months survey.December 16th - A Bank of America global fund manager survey for December showed that most investors expect President Trump to nominate White House economic advisor Kevin Hassett as the next Federal Reserve Chairman. Approximately 69% of respondents anticipated Hassetts nomination, while only 4% mentioned Fed Governor Waller, and another 4% expected former Fed Governor Kevin Warsh to be nominated. This survey was conducted before Trump told the Wall Street Journal that he preferred either Hassett or Warsh to lead the Fed. Current Fed Chairman Jerome Powells term ends next May.December 16th - According to Bank of Americas latest global fund manager survey, the number of investors who believe the US dollar is overvalued increased in December. Approximately 53% of investors believe the dollar is overvalued, compared to 45% in the November survey. The survey also shows that investors are currently underweight on the dollar compared to historical levels. Short positions in the dollar are considered the third most crowded trade. Long positions betting on the rise of the "Big Seven" (including Apple and Alphabet, seven major tech giants) are considered the most crowded trade, followed by long positions in gold.December 16th - A Bank of America global fund manager survey released in December showed that investor optimism about the macroeconomic outlook has reached its highest level since August 2021. The survey found that global economic growth expectations rose to a net 18%, up from a previous net 3%. "Economic expectations are following stock market performance," Bank of America stated. The bank said this optimism stems from strong earnings expectations, which are currently at a net 29%, the highest level since August 2021. 57% of respondents believe the economy will achieve a soft landing—that is, inflation will slow, but the economy will not experience a recession.

S&P 500 Retreats From Session Highs Amid Rising Geopolitical Tensions

Cory Russell

Nov 16, 2022 17:27


With rising geopolitical tensions, traders profit

Several missiles that landed in Poland and killed at least two individuals caused the S&P 500 to retreat from session highs. A committee on national security and defense matters was invited to an urgent meeting by Poland. Poland hasn't yet stated what it intended to talk about. It is clear that Poland will assess whether these missiles originated from Russia, which today carried out significant strikes against the energy infrastructure of Ukraine.


Poland is a NATO member, therefore the possible escalation of geopolitical tensions is taken into account by the markets. It is not unexpected that traders swarmed to purchase safe-haven assets. The US Dollar Index recovered some of its losses and moved closer to the 107 level. As the demand for safe haven assets increased, gold also found support and reclaimed the $1775 mark.


The price of WTI oil increased toward the $88 mark as Hungary convened its security council to discuss Ukraine's decision to halt oil transit from Russia via the "Druzhba" pipeline. These developments might give oil stocks a lot of support in the coming days.


Putting geopolitics aside, the market has been upbeat today as a result of Walmart's presentation of solid third-quarter results, revised expectations, and $20 billion repurchase program.


Whether the current geopolitical developments will have an impact on the U.S. stock market is the main concern. Following the recent rally, some traders might want to lock in profits in the near future.


In the long run, the suspension of Russian oil exports to Hungary could be a major issue and boost the oil market as the G7 nations get ready to cap the price of Russian oil. Higher oil prices increase inflation, which might make the Fed more hawkish and damage stocks.

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