Notifications Bell

The world pledges to support Ukraine

The world pledges to support Ukraine

All eyes were on the NATO leaders' meeting about the Russian invasion of Ukraine. This meeting coincided with the G7, where Japan was also present.

NATO countries agreed to increase support in military equipment to Ukraine in addition to reinforcing the borders of neighboring countries with Russia by sending new military units.

The tension therefore continues and is showing no sign of slowing down. The escalation of economic sanctions on Russia as a country and individuals linked to the Russian government also continues.

What does not seem to progress is the proposed embargo on Russian oil by Europe. Should a ban be announced, Germany has already described it as an economic disaster. This was the main reason that oil fell around $3 yesterday. With this, the enormous upward momentum triggered yesterday when the possibility of the embargo became known was stopped.

And although the war tension does not subside, the global stock indices experienced gains yesterday after the corrective fall of the previous day.

The market is assimilating the war and what comes from it, and economic fundamentals are beginning to regain prominence. This is the case with yesterday's PMI data from Europe, the UK, and the US. Both manufacturing and services exceeded the average forecasts for March, providing renewed optimism about the economy's evolution and dispelling fears of a recession, at least for now.

The S&P500 index managed to hold above the 100-day moving average and is unchallenged from a technical point of view until the latest high at 4580.

The VIX index, which reflects the volatility of this stock market index, continues to fall due to the recovery of the S&P500, approaching the price concentration zone in the range between 17 and 20.

And gold continues to rise due to its nature as an asset used as a hedge against inflation in an economic scenario without any sign indicating a break in the upward climb in prices. Technically, gold has broken out of last week's range in the upward range of the 1945 area and is heading towards the psychological level of 2000 and above.

Sources: Bloomberg, Reuters.

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.

The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.

The research analyst is not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation or particular financial needs before making a commitment to invest.

The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.